Canarc, Echo Bay team in Guyana

An alliance with Canarc Resource (TSE) gives Echo Bay Mines (TSE) a call on Canarc’s exploration efforts in Guyana and Suriname.

The latter will buy a 3-million-share private placement in Canarc at $2.36 per share, as well as pay Canarc $1.3 million.

For its part, Canarc must spend at least $5 million exploring a given property to the prefeasibility stage. At that stage, Echo Bay will become operator and develop the property towards the completion of bankable feasibility study.

Upon completion of that study, Echo Bay will acquire an option to buy a half interest in the property by paying Canarc a “success fee” (equivalent to 5% of the world price of gold) with respect to half of the proven and probable minable reserves.

Canarc is meanwhile drilling several bulk-tonnage gold targets on two properties, in Guyana and Suriname.