Canarc Initiates Arbitration with Grassalco; Seeks Compensation for and Resolution of Grassalco's
Defaults Under the Benzdorp Property Agreement, Suriname
Vancouver, British Columbia, Canada,
March 18, 1999
Canarc Resource Corp. announces that it has filed for arbitration of a
dispute with its Surinamese partner, Grassalco, regarding compensation for,
and resolution of, various Grassalco defaults under the Canarc-Grassalco
agreement governing the Benzdorp property in the Republic of Suriname.
Pursuant to the agreement, the arbitration has been filed under the
UNCITRAL (United Nations Commission on International Trade Law) rules with
the London Court of Arbitration in London, England.
Canarc is seeking to have Grassalco honour its obligations to incorporate a
Suriname corporation, issue shares of the corporation to Canarc and
transfer its mineral titles for the Benzdorp concessions to that
corporation. Grassalco was to have met these obligations over 2 years ago
and although Canarc repeatedly asked Grassalco to meet its commitments and
Grassalco constantly promised to do so, it has not done so.
As a result of their breaches of the agreement, Grassalco has caused
significant damages to Canarc, including the withdrawal of Placer Dome last
August from an option agreement with Canarc to explore the Benzdorp
property and if successful, construct and operate a large gold mine at
Benzdorp. Canarc is therefore seeking compensation from Grassalco for
millions of dollars in cash and other forms of compensation.
Canarc Resource Corp. is a growth-oriented, international gold exploration
and mining company. Production increased 36% last year to 9500 oz. at the
Company's Sara Kreek (80%) mine . Reserves and resources now total 2
million oz. at the New Polaris (100%) and Bellavista (18%) projects. Our
large exploration portfolio includes joint ventures with Homestake and
Noranda. Major shareholders include Barrick Gold and Echo Bay Mines. The
Company's common shares trade under the symbol "CCM" on the Toronto Stock
For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
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