Indico Resources Ltd. (TSX-V:IDI) announces that further to its news release of May 1, 2015, the Company has closed a non-brokered private placement of 40,000,000 units of the Company with Aruntani S.A.C. at a price of 0.075 per Unit for gross proceeds of $3,000,000. Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole Warrant entitles the holder to purchase one Share at an exercise price of $0.10 per Share for a period of two years from the date of issuance of the Warrant, subject to Indico’s right to accelerate the exercise of the Warrants in the event that the closing price of the Shares on the TSX Venture Exchange 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. All securities issued in connection with the Private Placement are subject to a statutory hold period expiring on November 24, 2015 in accordance with applicable securities legislation. Proceeds will be used to make property payments which were due to be paid on the 20th of April 2015.
 

Following completion of the Private Placement, Aruntani now has direct ownership and control over 40,000,000 common shares of the Company representing 27.2% of its issued and outstanding Shares, and Warrants to purchase a further 20,000,000 Shares. Assuming Aruntani were to exercise of all of the Warrants held by it, Aruntani would then own 60,000,000 Shares representing 35.9% of the then issued and outstanding shares of the Company.
 

Indico President and CEO, Bob Baxter said, “We welcome Mr Luis Alva to the board of directors of Indico and Aruntani as our partner in the Acana project. Aruntani are currently developing new access roads to the project and finalising community agreements in relation to the development, evaluating heap leach pad locations and preparing for a drilling campaign, the results of which will be used to include in a new mineral resource estimate and integrated into the PEA for the project.”
 

Aruntani acquired the Units for investment purposes. The Company has received shareholders approval approving the change in control arising from the issuance of Units to Aruntani by way of written consent resolution as set out in TSX Venture Exchange Policy 4.1. Other than the foregoing, Aruntani has no present intention to acquire further securities of the Company, although Aruntani may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.
 

The Company has also appointed Luis Alva, as nominated by Aruntani, to the board of directors of Indico.
 

About Indico Resources Ltd.

Indico is a mineral resource exploration company focused in the discovery and exploration of porphyry copper-gold deposits in South America. The Acana Porphyry Project, located in the Arequipa Region of Peru, is the Company’s primary exploration project and is currently the main focus of exploration activities.