Dundee-Palliser, North Amer. sell Vezza interests to

Toronto-based juniors Dundee-Palliser Resources (TSE) and North American Rare Metals (ME) have sold their jointly owned interests in the Vezza gold project in northwestern Quebec to Agnico-Eagle Mines (TSE) for $1 million in cash and a retained 15% net profits interest (NPI).

The Vezza project, owned 50% each by Dundee and North American, consists of 373 claims in Vezza, Noyon, and Cavalier twps. in the Casa Berardi area of Quebec. The property includes the Vezza deposit which has preliminary reserves of 2.1 million tons grading 0.15 oz. gold per ton.

This new agreement replaces a previous agreement under which Agnico had the right to earn a 51% interest in the Vezza properties by completing a feasibility study and spending $7.4 million on exploration and development by Dec. 1, 1994.

Under the new agreement, Dundee and North American have also agreed to settle certain NPI and net smelter return (NSR) royalty issues attached to the Vezza properties. In the settlement, the holders of the royalties will receive $80,000 and options to purchase 200,000 shares each of Dundee and North American at current market prices for a period of five years. Agnico has the right to purchase a 10% NPI from Dundee and North American for $2.7 million at any time up to and including the start of commercial production on the Vezza properties. If Agnico exercises this right, Dundee and North American have a onetime right to require Agnico to purchase their remaining 5% NPI for $1.3 million.