Southern Arc acquires Indotan

Vancouver-based mining firm Southern Arc Minerals Inc. reported Monday that it has acquired 1.3 million shares of Southern Arc for $0.90 per share from Indotan Inc.

The shares were part of a total of 3.5 million Southern Arc shares issued to Indotan in a transaction previously announced on October 29, 2009. As part of the transaction, Indotan granted Southern Arc the option to acquire 1.5 million of the Southern Arc shares at $0.90 per share.

The 1.3 million shares acquired pursuant to the Option will be held by Southern Arc subject to a bonus and compensation plan. Pursuant to the bonus and compensation plan, the shares may be distributed or optioned to eligible persons, including directors, officers, employees or consultants of Southern Arc. The bonus and compensation plan is subject to approval of the TSX Venture Exchange and the shareholders of Southern Arc.

The balance of the shares underlying the Option were assigned to Robert J. Gallagher, a director of Southern Arc, in consideration for his services as a director Gallagher subsequently exercised the remainder of the Option, acquiring 200,000 Southern Arc shares.

Since March, 2005 Southern Arc has been conducting exploration on two of its Indonesian properties, one on Lombok and one on Sumbawa, pursuant to powers of attorney granted by Indotan as holder of the related contract of work applications. The powers of attorney refer specifically to contracts of work which have been replaced with IUP mining licenses by the new mining law.

By acquiring the Indotan name and the subsidiary company Southern Arc? will have direct control over the applications for the IUP?s on Lombok and Sumbawa.

Arc Minerals announced on January 10, 2011 that its newly formed Indonesian subsidiary PT Indotan Lombok Barat Bangkit (PT ILBB) has been granted a Mining Business License or IUP for its West Lombok property, located on Lombok Island, West Nusa Tenggara Province.

The West Lombok Project IUP (10,088 hectares) covers a 13 km long, northwest trending structural corridor of mineralization and alteration. These prospects have been targeted for porphyry intrusions and related mineral systems, including porphyry copper-gold, high sulfidation gold-copper and mesothermal to epithermal gold deposits.(romel)