Canarc to acquire fully permitted project in Mexico

… Canarc Resource has announced that it plans to purchase 100% of Oro Silver Resources, which owns the fully permitted El Compas gold-silver property in Mexico’s Zacatecas state. Oro Silver Resources is wholly owned by Marlin Gold Mining (TSXV: MLN; US-OTC: MLNGF).

Under the proposed transaction on July 6, Canarc would issue Marlin 19 million Canarc shares in exchange for its 100% stake in the company, making Marlin Canarc’s largest shareholder, with a 10% stake. The agreement grants Canarc until Sept. 30 to complete its due diligence on the 29 km² property.

If the deal goes ahead, Marlin will get one seat on Canarc’s board and keep the Altiplano royalty buyback option, where it can repurchase a 1.5% net smelter return royalty (NSR) on certain mining claims for US$1.5 million. It will also receive a 1.5% NSR on all non-Altiplano claims that are not associated with the royalty.