Vancouver, Canada – September 3, 2020 – Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canarc” or the “Company”) is pleased to announce its intention to increase the size of its previously announced non-brokered private placement by issuing up to an additional 65,000,000 units for up to an additional C$5,200,000 in gross proceeds (the “Upsize”) through a second tranche which is subject to shareholder approval. As a result of the Upsize, the Company will issue a total of up to 105,000,000 units for aggregate gross proceeds of up to C$8,400,000 (the “Private Placement”).
Subject to shareholder approval, each unit in the tranche 2 upsizing will consist of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”) with each Warrant entitling the holder to acquire one additional Common Share at an exercise price of $0.13 for a period of 24 months from the closing date. If the closing price of the Common Shares is at a price equal to or greater than $0.20 for a period of 10 consecutive trading days, Canarc will have the right to accelerate the expiry date of the Warrants by giving written notice to the Warrant holders that the Warrants will expire on the date that is not less than 30 days from the date notice is provided by Canarc to the Warrant holders. Finders’ fees of 6% may be payable in cash and/or warrants on certain portions of the financing, subject to regulatory approvals.
As a result of the Upsize, closing of the Private Placement will occur in one or more tranches. The previously announced issuance of up to 40,000,000 units for gross proceeds of up to C$3,200,000 will close in the first tranche on or about September 10, 2020. The Upsize will close in the second tranche on or about October 22, 2020. (the “Final Tranche”).
Pursuant to the rules of the Toronto Stock Exchange (“TSX”), the Upsize and the Final Tranche are subject to (i) the approval of a simple majority of the votes cast by holders of the Common Shares represented in person or by proxy and entitled to vote at the special meeting of Canarc’s shareholders to be held on or about October 20, 2020; and (ii) the approval of the TSX. All securities issued pursuant to the Private Placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
“Scott Eldridge”
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Scott Eldridge, Chief Executive Officer
CANARC RESOURCE CORP.
About Canarc – Canarc Resource Corp. is a growth-oriented gold exploration company focused on generating superior shareholder returns by discovering, exploring and developing strategic gold deposits in North America. The Company is currently advancing two core assets, each with substantial gold resources, and has initiated a high impact exploration strategy to acquire and explore new properties that have district-scale gold discovery potential. Canarc shares trade on the TSX: CCM and the OTCQB: CRCUF.
For More Information – Please contact:
Scott Eldridge, CEO
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Cell: (604) 722-5381
Email: scott@canarc.net Website: www.canarc.net
