Hotel Terbaik Bali - Arco Resources Corp. /quotes/comstock/11v!arr (CA:ARR 0.09, -0.01, -5.56%) ("Arco" or the "Company") is pleased to announce that it has entered into an agreement in principle with Zodiac Capital Ltd., an Australian company ("Zodiac") dated April 7, 2010 (the "LOI") under which it will grant Zodiac the right to acquire up to a 100% interest in Arco's Tres Hermanas property (the "Property") located in Oaxaca, Mexico (the "Proposed Acquisition"), subject to Exchange approval. The Proposed Acquisition would constitute an arm's length transaction.
Pursuant to the terms of a definitive option agreement (the "Option") to be negotiated between the parties, 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 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.
Completion of the Proposed Acquisition is subject to a full due diligence review of the Property to be completed by Zodiac within 30 days of the LOI. It is also subject to all required corporate and regulatory approvals and approval of the TSX Venture Exchange.
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. A 3rd claim block of 2310 hectares, Khulan, is currently pending titling by the Mexican General Direction of Mines and is part of the Property.
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 currently has agreements in principle to option 100% interests in its Lachiguiri, Silacayoapan and Nino Perdido Property (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.
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
Pursuant to the terms of a definitive option agreement (the "Option") to be negotiated between the parties, 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 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.
Completion of the Proposed Acquisition is subject to a full due diligence review of the Property to be completed by Zodiac within 30 days of the LOI. It is also subject to all required corporate and regulatory approvals and approval of the TSX Venture Exchange.
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. A 3rd claim block of 2310 hectares, Khulan, is currently pending titling by the Mexican General Direction of Mines and is part of the Property.
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 currently has agreements in principle to option 100% interests in its Lachiguiri, Silacayoapan and Nino Perdido Property (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.
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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