Court disallows Canarc merger

The Supreme Court of British Columbia did not approve a proposal to amalgamate Canarc Resource (VSE), Suntac Minerals (VSE) and Rembrandt Gold Mines (ASE).

Canarc currently holds a 51% interest in Suntac, and a 28% shareholding in Rembrandt. The companies are evaluating a number of alternatives, including an appeal of the Supreme Court decision.

A dissenting shareholder of Rembrandt holding about 1.3 million shares petitioned to block the proposed 3-way merger on the basis it is unfair. This effort was successful, but a merger between Canarc and Suntac is considered feasible and may be proposed.

The companies all have direct or indirect interests in the Polaris-Taku gold project in northwestern British Columbia.

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