Canarc ResourceCorp. said May 9 that it has agreed in a definitive deal to sell itsOro Silver Resources Ltd.unit to Endeavour Silver Corp.for a deemed value of C$10.5 million.

The Oro Silver unit holds the El Compas gold-silver mine in Mexico and a five-yearrenewable lease on the 500-tonnes-per-day state-owned La Plata ore processing plant.

Endeavour will issue 2,147,239 common shares at C$4.89 each.Endeavour will assume Canarc's obligation to deliver 165 troy ounces of gold toMarlin Gold Mining Ltd. in three 55-troy-ounce installments due in October 2016,2017 and 2018.

The 3,990-hectare El Compas property consists of 28 fully permittedconcessions. From the total, 22 concessions are subject to a 1.5% net smelter returnroyalty while six concessions are subject to a 3% NSR royalty.

In January, Canarc Resource's preliminary economic assessment on the El Compas gold-silverproject estimated posttax net present value, discounted at 5%, at US$32.9 million,with a 84.3% internal rate of return. Initial preproduction CapEx was calculatedto total US$7.6 million, with sustaining capital for the life of mine was peggedat US$3.9 million.

Endeavour is planning to conduct further exploration on the minewith an aim to upgrade and expand the current mineral resource base, refurbish theplant, re-evaluate the economics to develop the mine and complete an NI 43-101-compliantreport this year with plans to start production in 2017.