Canarc
Closes CA$1.1 Million Private Placement Financing
Vancouver, Canada – July 25,
2007 - Canarc
Resource Corp. (TSX: CCM: OTC-BB: CRCUF, DBFrankfurt: CAN) announces that it has now closed the recently
announced non-brokered private placement equity financing for a total of
CA$1.1 million.
The private placement consisted of 2,200,000 units
priced at CA$0.52 each for gross proceeds of CA$1,144,000. Each unit
consisted of one common share and one half of a share purchase warrant. Each
full warrant is exercisable to purchase an additional common share at an
exercise price of CA$0.65 for a one year period from the date of closing. Finders’
fees of 6% totaling $32,760 were paid for a portion of the private
placement. The units will be subject to the standard four month hold
period. The financing was well oversubscribed but management elected
to close only the previously announced amount so as to minimize shareholder
dilution.
Canarc will use the net proceeds to explore its
Providencia/Los Arrastres and Santiago gold projects in Mexico, to acquire
additional strategic gold properties in Mexico, and for working capital. Phase
1 exploration work, including geological mapping, rock sampling,
geochemical soil sampling and hand trenching is now underway on the Los
Arrastres portion of the Providencia project in order to identify top
priority targets for drilling within the next two months.
Canarc Resource Corp. is a growth-oriented, gold
exploration company listed on the TSX (CCM) and the OTC-BB (CRCUF). Canarc
is currently focused on advancing its 1.15 million oz New Polaris gold
project in north-western British Columbia to the feasibility stage and on
acquiring attractive near-term gold exploration and mining projects in
Mexico. Barrick Gold Corp. is a shareholder.
CANARC RESOURCE CORP.
Per:
/s/ Bradford J. Cooke
Bradford J. Cooke
Chairman and C.E.O.
For more information, please contact Gregg Wilson
at Toll Free: 1-877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744,
email: invest@canarc.net or visit our website, www.canarc.net. The
TSX has neither approved nor disapproved the contents of this news release.
CAUTIONARY DISCLAIMER – FORWARD LOOKING
STATEMENTS
Certain statements contained herein regarding the
Company and its operations constitute “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995. All statements that are not
historical facts, including without limitation statements regarding future
estimates, plans, objectives, assumptions or expectations of future
performance, are “forward-looking statements”. We caution
you that such “forward looking statements” involve known and
unknown risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated in such
statements. Such risks and uncertainties include fluctuations in
precious metal prices, unpredictable results of exploration activities, uncertainties
inherent in the estimation of mineral reserves and resources, fluctuations
in the costs of goods and services, problems associated with exploration
and mining operations, changes in legal, social or political conditions in
the jurisdictions where the Company operates, lack of appropriate funding
and other risk factors, as discussed in the Company’s filings with
Canadian and American Securities regulatory agencies. The Company
expressly disclaims any obligation to update any forward-looking statements.
We seek safe
harbour.
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