Arco Resources Corp.

Arco Resources Corp.

March 30, 2010 14:56 ET

Arco Closes Final Tranche of Non-Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2010) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is pleased to announce that it has closed the second and final tranche of its non-brokered private placement announced on February 11, 2010 to complete the full private placement with gross proceeds totaling $1,291,500.

The second tranche consisted of 13,480,000 units at a price of $0.05 per unit for total gross proceeds of $674,000. Combined with the first tranche of 12,350,000 units which closed March 24th, the gross proceeds of the full private placement totaled $1,291,500.

All securities issued with respect to the second tranche of the placement are subject to a four month hold period expiring on July 30, 2010, in accordance with the policies of the TSX Venture Exchange (the "Exchange") and the provisions of the Securities Act (British Columbia).

The units each consist of one common share and one non-transferable share purchase warrant (the "Warrants") exercisable for an additional common share at a price of $0.10 for two years from the date of issue. All warrants issued are subject to an acceleration provision wherein if the Company's shares trade at or above the weighted average trading price of $0.20 for 20 consecutive trading days (after all hold periods expire), the Company will give notice via a news release that the warrants will expire 30 days from the date of such news release.

Arco has agreed to pay qualified parties a finder's fee in cash equal to 7.5% of the total proceeds invested by subscribers introduced to Arco by such parties, subject to the approval of the Exchange. Each qualified finder will also receive a non-transferable warrant (the "Finder's Warrant") entitling them to purchase that number of Arco common shares equal to 10% of the total number of Units purchased by subscribers introduced to Arco by such parties. Each Finder's Warrant will have terms and conditions similar to that of the Warrants issued under the private placement. In connection with the closing of the second tranche, Arco has agreed to pay a total of $25,425 in cash and issue 678,000 Finder's Warrants.

The proceeds of the private placement will be used to fund additional exploration work on Arco's Taviche, Predilecta, Cuatro Venados and Tres Hermanas properties (see our news releases dated February 9th and February 1st, 2010, respectively) and for general working capital.

About Arco Resources

Arco holds a 100% interest in six mineral claim blocks and the right to acquire 100% of a seventh, all located in the State of Oaxaca, Mexico. The Company has two 43-101 compliant projects, the Lachiguiri project (Ag,Pb,Zn) and the Tres Hermanas project (Ag,Pb,Zn). In addition the Company has begun to focus its efforts on its Taviche and newly-acquired Predilecta claim blocks, each of which have had historical production of gold and silver. The Company currently has an agreement in principle to option a 100% interest in its Lachiguiri, Silacayoapan and Nino Perdido properties to Silex Ventures Ltd. For further information on the Company please go to

On behalf of the Board of Directors of Arco Resources Corp.

Warren McIntyre, President and Chief Executive Officer

Arco Resources Corp.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arco Resources Corp.
    Warren McIntyre
    President and Chief Executive Officer
    604 639 2866
    604 662 3904 (FAX)