Canarc Resource Corp. (TSX:CCM, OTCBB:CRCUF, FWB:CAN) signed a letter of intent with Pan American Goldfields Ltd.(OTCQX: MXOM) with respect to a business combination whereby Canarc may acquire all of the outstanding common shares of Pan American.
According to the company’s press release:
The main asset of Pan American is its interest in the La Cieneguita mine properties located in Chihuahua State, Mexico. Pan American, together with its partner operator, Minera Rio Tinto SA de CV (“MRT”) is in pilot production at its gold-silver mine at La Cieneguita whereby Pan American receives 35% of net cash-flow from production. Subject to due diligence, Canarc and Pan American are of the view that the mine can potentially be modernized and expanded in phases to become a core asset of the combined Company.
Mr. Catalin Chiloflischi, CEO of Canarc, stated:
I would like to thank the Pan American management team and board of directors for their confidence in our ability to grow the Cieneguita Mexico mine into a profitable producing asset for the benefit of our combined shareholders, stakeholders, employees and the local community at La Cieneguita. We look forward to leveraging our team’s mine building and operating expertise in order to transition Canarc into a successful producing gold-silver mining company.