Dundee-Palliser buys MVP shares

Dundee-Palliser Resources (TSE) will buy an 11.7% interest, representing 17.5 million common shares, in MVP Capital (TSE) for 5 cents per share.

A 10% convertible note will be issued for $562,500; the remaining $312,500 of the $875,000 transaction cost will be paid in cash. The note will be convertible into Dundee-Palliser shares at 40 cents per share. In addition, Dundee has an option to buy another 3.75 million shares at 5 cents per share for two years.

MVP owns $1 million worth of Dundee convertible bonds and has a 42.9% interest in Dundee.