Arco and Silex Ventures Receive Conditional Approval on Proposed Qualifying Transaction
February 07 2011 - 12:03PM
Marketwired Canada
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.
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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.