Arco Completes Tres Hermanas Property Option to Zodiac
22 March 2011 - 11:00PM
Marketwired
Arco Resources Corp. (TSX VENTURE: ARR) ("Arco" or the "Company")
announces that the Company has now signed a definitive option
agreement (the "Option") for the Tres Hermanas claims (the
"Property") with Zodiac Capital Ltd., an Australian company
("Zodiac"), subject to TSX Venture Exchange approval. This
announcement follows Arco's news release of January 18, 2011
concerning its access agreement with the community at Rio Dulce,
and its existing letter of intent with Zodiac.
Pursuant to the terms of the Option, Zodiac will incorporate and
fund a Mexican subsidiary ("Zodiac Mexico") that will earn a 90%
interest in the Property over a three-year period in consideration
for total cash payments of US$500,000. Zodiac Mexico will be
required to perform a minimum of US$1.5 million in exploration
expenditures on the Property over the three-year term of the
Option. The remaining 10% interest in the Property will remain with
Arco as a carried interest. Zodiac may elect at any time during the
term of the option to purchase Arco's 10% carried interest in the
Property for US$1,000,000. In addition, Arco will receive shares of
Zodiac Mexico, having a value of US$250,000, concurrent with Zodiac
Mexico's listing on the Australian Stock Exchange or such other
stock exchange as Zodiac may determine. Finally, Arco will receive
a 1% net smelter royalty on any production from the Property.
Tres Hermanas Property
The Property consists of the Tres Hermanas 1 and Tres Hermanas 2
claim blocks, which have areas of 500 and 900 hectares
respectively, and the Khulan claim block of 2310 hectares.
The Tres Hermanas property covers a silver-lead-zinc-bearing
vein system that has historic underground workings on five levels
along a 400 metre strike. Previous underground sampling showed
local values greater than 500g/t of silver. In addition, chip
samples taken included values as high as 764.5 g/t of silver and
10.4% lead across 1.5 metres. Regional soil sampling has indicated
the vein system continues along strike in both directions. The vein
system shows widths of one to two metres with a lower grade shell
upwards of 15 metres wide.
Paul Cowley, P.Geo. and Chief Geologist for Arco Resources
Corp., is the Qualified Person, as defined in National Instrument
43-101, who has reviewed and approved the technical content of this
news release.
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 has optioned its Lachiguiri, Silacayoapan and Nino Perdido
properties to Argentum Silver Corp., and has optioned a 90%
interest 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.
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. Ian Tootill Director of Investor
Relations 604.639.2866 ian@arcoresources.com
www.arcoresources.com
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