IDI Indico Resources Ltd

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) announces
that it has entered into private placement subscription agreements with
Stonehouse Constructions Pte Ltd. ("Stonehouse") for the placement (the "Private
Placement") of convertible debentures in the aggregate principal amount of
$1,500,000 and bearing interest at an initial rate of 8% per annum (the
"Convertible Debentures"). The Convertible Debentures are convertible in whole
or in part into a maximum of 13,636,363 units (each a "Unit") at a price of
$0.11 per Unit. Each Unit will be comprised of one common share in the capital
of the Company (a "Share") and one common share purchase warrant (a "Warrant").
Each Warrant will entitle the holder to purchase one Share at an exercise price
of $0.16 per Share for a period of two years from the date of issuance of the
Warrants, subject to Indico's right to accelerate the exercise of the Warrants
(the "Accelerated Expiry") in the event the closing price of the Shares on the
TSX Venture Exchange (the "TSX-V") is equal to or exceeds $0.30 per Share for a
period of 10 consecutive trading days between the expiry date of the four month
hold period and the date of expiry of the Warrants. In the event that the
Convertible Debentures are fully exercised and the Warrants issuable upon
exercise of the Convertible Debentures are exercised, up to a total of
27,272,726 Shares could be issued, representing 32% of the then issued and
outstanding common shares of the Company, resulting in a change of control of
the Company under the policies of the TSX-V. 


Subject to the approval of TSX-V, Stonehouse may at its' sole discretion elect
to receive units of Indico (the "Interest Units") in payment of all or any part
of the accrued interest payable at the end of the term. Each Interest Unit shall
be comprised of one Share and one Warrant (the "Interest Warrant") entitling the
holder to acquire an additional Share for a period of 24 months from the date of
conversion of the Debentures subject to the Accelerated Expiry. The conversion
price on the Interest Units and the exercise price of the Interest Warrants
shall be the lowest price allowable under the policies of the TSX-V at the time
TSX-V approval is obtained for such interest conversion.


Additionally, Stonehouse will be entitled to appoint two nominees to the board
of directors of Indico. As such, the Company will be calling an Extraordinary
Meeting of its shareholders to approve the potential change in control arising
from the issuance of the Convertible Debentures. In the event that the
shareholders of the Company do not resolve the conversion terms at the
Extraordinary Meeting and under certain other event of default, the interest
rate of the Convertible Debentures will be increased to 12% per annum and the
Convertible Debentures will mature and become due and payable in cash together
with the interest on the earlier of the date on which Stonehouse makes demand
for payment and the date that is one year from the date of closing.


In connection with the Private Placement, the Company and Stonehouse have signed
a Heads of Agreement to form an alliance in the development of mineral projects
held by Indico in Peru. Under the terms of this alliance and in return for
assistance in the sourcing of financing for the future exploration and
development requirements of the Company: 




--  Stonehouse and Indico shall enter into agreement for Stonehouse to
    develop, construct and operate the mines in Peru which is based on a 10%
    fee on cost for the service provider; with the agreement based on open
    book Alliance principles. 
--  Stonehouse will commit to raise a minimum of 33.3% of required capital
    for the implementation of any construction as operating capital to be
    charged on throughput rates.



Stonehouse specializes in the delivery of construction projects across the
globe. Current work locations are Kuala Lumpur (Malaysia), Astana (Kazakhstan),
Accra (Ghana) and Vancouver (Canada).


Stonehouse provides the following integrated, multidiscipline services to their
clients: 




--  Strategic & project specific planning, engineering and management
    services 
--  Engineering, Procurement and Construction Management (EPCM) 
--  Asset operation (mines, power plants, processing plants and associated
    infrastructure) 
--  Arranging or providing project finance 
--  Project investment and ownership 



President and CEO, Robert Baxter commented "We are very pleased to be entering
into this Strategic Alliance with Stonehouse. Their well established
capabilities in project development, construction and financing add strength to
Indico. We look forward to a successful and profitable project development at
the Ocana and Maria Reyna copper projects in Southern Peru." 


The Company may pay a finder's fee in connection with the Private Placement
within the amount permitted by the policies of the TSX-V. 


Closing of the Private Placement is subject to a number of conditions, including
receipt of all necessary corporate and regulatory approvals, including the
TSX-V. All securities issued in connection with the Private Placement will be
subject to a statutory hold period of four months plus a day from the date of
issuance in accordance with applicable securities legislation.


The net proceeds from the Private Placement are intended to be used to further
exploration of the Company's Ocana porphyry copper-gold project in Peru and for
general working capital purposes. 


About Indico Resources Ltd.

Indico Resources Ltd. is a resource exploration company focused in the discovery
and exploration of porphyry copper-gold deposits in South America. The Ocana
Porphyry Project is the Company's primary exploration project and is currently
the main focus of exploration activities. Recently, the Company entered into a
Memorandum of Understanding to acquire 51% initially and up to 100% eventually
by fulfilling the conditions set out in the press release dated 22 October, 2012
of the Maria Reyna Cu-Mo porphyry-skarn project in the Andahuaylas-Yauri Belt,
Cusco Region. This belt hosts several significant deposits, including the Las
Bambas porphyry-skarn cluster (1.7 billion tonnes of 0.60% Cu), Haquira (690
million tonnes at 0.59% Cu), and the neighbouring Constancia porphyry deposit
(reserves of 450 million tonnes at 0.36% Cu). For more information, please visit
our website at www.indicoresources.com; follow us on Twitter: @indicoresources
and Facebook: Indico Resources Ltd.


The technical information provided in this news release was reviewed and
approved by Robert W. Baxter (FAusIMM), a director of the Company and a
qualified person for the purposes of National Instrument 43-101.


On behalf of Indico Resources Ltd.,

Robert Baxter, President and Chief Executive Officer

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and "forward
looking information" within the meaning of the British Columbia Securities Act
and the Alberta Securities Act. Generally, the words "expect", "intend",
"estimate", "will" and similar expressions identify forward-looking information.
By their very nature, forward-looking statements are subject to known and
unknown risks and uncertainties that may cause our actual results, performance
or achievements, or that of our industry, to differ materially from those
expressed or implied in any of our forward looking information. Statements in
this press release regarding Indico's business or proposed business, which are
not historical facts, are forward-looking information that involve risks and
uncertainties, such as estimates and statements that describe Indico's future
plans, objectives or goals, including words to the effect that Indico or
management expects a stated condition or result to occur. Since forward-looking
statements address events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements. Investors are
cautioned not to place undue reliance on forward-looking statements, which speak
only as of the date they are made. All of the Company's Canadian public
disclosure filings may be accessed via www.sedar.com and readers are urged to
review these materials, including the technical reports filed with respect to
the Company's mineral properties. The foregoing commentary is based on the
beliefs, expectations and opinions of management on the date the statements are
made. The Company disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Indico Resources Ltd.
Bob Baxter
President & CEO
+1(604) 638-5817
+1(604) 408-7499 (FAX)
bbaxter@indicoresources.com
www.indicoresources.com

Indico Resources (TSXV:IDI)
Historical Stock Chart
From Nov 2024 to Dec 2024

Indico Resources (TSXV:IDI)
Historical Stock Chart
From Dec 2023 to Dec 2024