Arco Resources Corp.

Arco Resources Corp.

February 07, 2011 13:03 ET

Arco and Silex Ventures Receive Conditional Approval on Proposed Qualifying Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") announces that the TSX Venture Exchange has conditionally approved the qualifying transaction filed by Silex Ventures Ltd. ("Silex"), under which Arco will grant Silex the right to acquire up to a 100% interest in three of Arco's claim blocks, including the Lachiguiri property (together, the "Properties"), all located in Oaxaca, Mexico. Silex has filed a filing statement dated February 2, 2011 (the "Filing Statement") which is posted under the Silex profile at Closing of the qualifying transaction is scheduled to occur on February 15, 2011, and trading will commence once Silex meets the conditions for the granting of final approval by the TSX Venture Exchange.

Silex will earn a 90% interest in the Properties over a three-year period in consideration for total cash payments of $250,000 and 2,500,000 common shares of Silex. Silex has also agreed to reimburse Arco for tax payments of 241,811 Mexican Pesos paid on the Properties in January of 2011. The remaining 10% interest in the Properties will remain with Arco as a carried interest. Silex may elect at any time during the term of the option to purchase Arco's 10% carried interest in the Properties for $1,000,000. Once such election is made, Silex will have one year to pay this amount.

On closing, Silex will also complete a non-brokered private placement to issue 11,902,270 units ("Units") at a price of $0.11 per Unit for gross proceeds of $1,309,250. Each Unit will consist of one common share ("Unit Share") and one share purchase warrant ("Warrant"). Each Warrant will be exercisable for one additional common share ("Warrant Share") for a period of one year from the date of issuance at an exercise price of $0.15 per Warrant Share.

About Arco Resources

Arco holds a 100% interest in seven mineral claim blocks, all located in the State of Oaxaca, Mexico. The Company has begun to focus its efforts on its Taviche and Predilecta claim blocks, each of which has had historical production of gold and silver. The Company currently has agreements in principle to option 100% interests in its Lachiguiri, Silacayoapan and Nino Perdido properties (to Silex Ventures Ltd.) and in its Tres Hermanas property (to Zodiac Capital Ltd.). For further information on the Company please go to Follow Arco on Facebook.

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

Warren McIntyre, President and Chief Executive Officer

Arco Resources Corp.

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Arco relies upon litigation protection for forward-looking statements.

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)