Arco and Silex Ventures Receive Conditional Approval on Proposed Qualifying Transaction
08 February 2011 - 5:03AM
Marketwired
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
www.sedar.com. 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 www.arcoresources.com. 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.
Contacts: Arco Resources Corp. Warren McIntyre President and
Chief Executive Officer 604 639 2866 604 662 3904 (FAX)
www.Arcoresources.com
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