Categories: Coin Shop Blog

Canarc to Lease Mexico-based La Plata Processing Plant

Canarc Resource Corp. (TSX:CCM,OTCBB:CRCUF) announced that it\’s signed a definitive agreement to lease and operate the permitted 500-tonne-per-day La Plata ore processing plant. The agreement is with the government of the state Zacatecas, and was made via Minera Oro Silver, Canarc\’s subsidiary.

Highlights of the agreement are as follows:

Lease term is 5 years with the right to extend for another 5 years

Canarc assumed responsibility for the plant as of January 29, 2016

Plant will be exclusively operated by Canarc’s Mexican subsidiary, Minera Oro Silver,

Canarc will pay a monthly lease payment of 136,000 Mexican Pesos, approximately US$ 7,500

Grace period of 6 months to allow time for plant refurbishing

Power and water are available for plant operations

Plant capacity is 500 tonnes per day with possibility to expand

Permitted tailings facilities has a current capacity for approximately 1 million tonnes

Certain plant refurbishment costs will be reimbursed to Canarc by lease payment offsets

Catalin Chiloflischi, CEO of Canarc, commented:

Today’s announcement marks the completion of yet another key step forward by Canarc to transition into a producing gold-silver mining company during 2016. With the lease agreement and PEA now complete, we are now focused on arranging the financing required to develop the mine to production this year.

Click here to read the full Canarc Resource Corp. (TSX:CCM,OTCBB:CRCUF) press release.