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Getchell looking to take over 2 Canarc gold properties in Nevada

Getchell Gold Corp. signed a binding letter agreement for an option to acquire Canarc Resource Corp.'s Fondaway Canyon and Dixie-Comstock gold properties in Nevada, for US$4 million in cash and shares over four years, with both projects subject to a 2% net smelter return.

The companies have agreed to a binding 105-day exclusive due diligence period, ahead of signing a definitive option agreement, according to the Oct. 17 release.

Getchell can fully acquire the two projects at any time before the fourth anniversary of the agreement by paying Canarc US$2.0 million in cash and US$2.0 million in shares.

The option also includes work commitments of about US$1.5 million over four years.

Half of the 2% NSR can be bought for US$1.0 million per property.