Arco Closes Property Sale to Argentum Silver
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/24/12 -- Arco Resources Corp. (TSX VENTURE: ARR) ("Arco" or the "Company") announces that it has closed the sale of the Lachiguiri and Silacayoapan properties (the "Properties") to Argentum Silver Corp. ("Argentum") in accordance with a settlement and purchase agreement dated May 9, 2012 (the "Purchase Agreement") (see Arco's news release dated May 10, 2012). The TSX Venture Exchange (the "Exchange") has formally approved the transaction, which was a Non-Arm's Length transaction under the policies of the Exchange, as Arco and Argentum have a common director and officers.
Under the terms of the Purchase Agreement, Arco sold a 100% interest in the Properties in consideration for the payment of $285,000 in cash from Argentum. In addition, Arco agreed to the cancellation of 1,500,000 common shares of Argentum that were held in escrow under an escrow agreement dated February 15, 2011. The amended and restated option agreement between Arco and Argentum dated February 1, 2011 has been terminated.
About Arco Resources
Arco holds a 100% interest in four mineral claim blocks, all located in the State of Oaxaca, Mexico. The Company is focusing its efforts on its Taviche and Tres Hermanas claim blocks, each of which has had historical production of gold and silver. 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
Forward Looking Statements
Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. Forward-looking statements include, without limitation, possible events, statements with respect to the Transaction and the cancellation of the Escrowed Shares. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Arco as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada; business opportunities that may be presented to, or pursued by, Arco; and any other factors that may cause the Transaction not to be completed. Many of these factors can affect Arco's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Arco. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this release are qualified by these cautionary statements and those made in our other filings with the securities regulators in Canada. These factors are not intended to represent a complete list of the factors that could affect Arco. Although Arco believes that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.
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 ext. 110
604.909.1818 (FAX)
ian@arcoresources.com
www.arcoresources.com
