Dundee-Palliser raises $ 1/2 m for Murgor, Grevet programs

Busy Dundee-Palliser Resources (TSE) recently entered into a couple of financing agreements designed to raise $571,300 for exploration on two northwestern Quebec projects.

They include the Grevet/Mountain Twp. copper zinc claims and the Murgor gold/base metal project 20 miles further east in Bruneau Twp.

Under a $321,300 flow-through agreement with Q-Vest 1989 Mining Exploration and Co., the former company is subscribing for 683,617 Dundee-Palliser shares at 47 cents each.

The agreement also provides for Q-Vest to receive warrants to purchase an additional 341,809 shares for 61 cents until June 1991 and for CMP 1989 11 Resource Partnership to receive 555,555 shares at 45 cents .

Dundee-Palliser says it is awaiting regulatory approval for a private placement of $250,000 worth of 5-year convertible debentures and 250,000 warrants with MVP Capital (TSE). The debentures are convertible into shares of Dundee- Palliser at 50 cents per share, while the warrants are exercisable on the basis of one Dundee-Palliser share at $0.625 per share for each warrant for three years.

As holder of a 54.5% stake in Dundee-Palliser once the financings are completed, MVP has an option to acquire a 50% stake in the Grevet/Mountain project under the following terms:

After Dundee-Palliser has spent $300,000 on exploration and presented the results to MVP, the latter company has 30 days in which to decide whether or n ot to exercise the option.

MVP can do so by spending $300,000 to explore Grevet/Mountain within six months of making the decision, after which expenses would be shared equally between both companies.

The 185-claim Grevet/Mountain property is adjacent to ground held by VSM Exploration (ME) where 2.24 million tonnes of grade 8.79% zinc, 0.45% copper and 0.21% lead and 43.6 g silver have been outlined so far.

A 10,000-ft. drill program, designed to test two strong parallel anomalies identified over a 4-mile strike length, commenced at Grevet/ Mountain recently. A 3,000-ft. follow-up exploration is also expected to get under way at the Murgor project in Bruneau Twp., where Dundee-Palliser and North American Rare Metals (ME) are involved in a joint venture.