Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) announces it has agreed to raise CA$3.1 million in two private placements of flow-through common shares.
Dundee Securities Corporation has agreed on a best efforts basis to act as Canarcís Agent in a brokered private placement of up to 3,350,000 flow-through common shares at CA$0.82 per share for total proceeds of up to CA$2,747,000. Dundee will receive a cash commission equal to 6% of the gross proceeds and a compensation warrant exercisable for common shares equal to 6% of the number of flow-through shares placed under the brokered offering at CA$0.82 per share for a 12 month period after the closing.
Canarc will also complete a non-brokered private placement of up to an additional 450,000 flow-through common shares at CA$0.82 per share for additional proceeds of up to CA$369,000. A cash findersí fee of 6% will be paid by Canarc on this non-brokered private placement.
The proceeds of both private placements will be used by Canarc to carry out the Phase 3 in-fill drilling program of approximately 60 holes totalling 18,600 m of core on the New Polaris gold project in northwestern B.C. The 2006 work program will also include an updated N.I. 43-101 resource estimate on the in-filled portion of the historic resource estimate, a conceptual mine plan, initial economic assessment, and additional environmental studies needed to enter into the provincial mine permitting process.
In connection with the 2006 work program, Canarc will incur Canadian Exploration Expenses in 2006 and will then renounce them to the private placees no later than December 31, 2006. The closing date for the two private placements will be on or before March 15, 2006 unless otherwise agreed to by the parties.
Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Companyís principal assets are its 100% interest in the New Polaris gold deposit, British Columbia and its 80% option on the Benzdorp gold property, Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.
On Behalf of the Board of Directors
CANARC RESOURCE CORP.
/s/ Bradford J. Cooke
Bradford J. Cooke
Chairman and C.E.O.
For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email: firstname.lastname@example.org or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.