Canarc and Grassalco Reach Accord to Resolve Benzdorp Dispute; Arbitration and Legal Actions Withdrawn
Vancouver, British Columbia, Canada,
June 7, 1999
Canarc Resource Corp. is pleased to announce that an accord has been reached with N.V. Grasshopper Aluminum Company (Grassalco) to resolve a dispute regarding the Benzdorp gold property in the Republic of Suriname. In a statement dated May 27th in Suriname, the parties jointly agreed to immediately withdraw their respective arbitration and legal actions and to finalize their discussions needed to complete the articles of incorporation for the Benzdorp joint venture company within one week.
In a sideletter to the statement, the parties further agreed that there are related issues that need to be resolved in a timely manner, as discussed in the meetings held on May 27.
Once the incorporation of the Benzdorp joint venture company and the resolution of the related issues are completed, Canarc intends to seek a joint venture with a senior mining company in order to explore and, if successful, develop a large gold mine on the Benzdorp property. Canarc currently holds the right to earn up to an 80% interest in the Benzdorp concessions from Grassalco.
Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 36% last year at the Company's Sara Kreek (80%) mine. Reserves and resources now total 2 million oz. at the New Polaris (100%) and Bellavista (18% after payback) 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 Exchange and "CRCUF" on the OTC Bulletin Board.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
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Tel: (604) 685-9700
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