Skeena,Tenore and Noranda on Maggie Creek bet

Vancouver-listed Skeena Resources and Tenore Oil & Gas have entered into a project engagement agreement with Noranda Exploration regarding the 62,000-acre Maggie Creek gold prospect near Eureka, Nev.

Under the terms of the agreement, Noranda will conduct operations on the property in which Skeena has a 100% interest, while Tenore holds an option to earn a 50% interest.

The initial work program on Maggie Creek, including geological mapping, geochemistry, geophysical surveys, trenching and drilling in four specific areas at an estimated cost of $320,000(US) will be paid by Tenore pursuant to its agreement with Skeena.

Tenore is obligated to spend an additional $180,000 on exploration of the property and to pay an advance royalty of $100,000 due February to earn a 50% interest in the property. Thereafter, Tenore and Skeena will joint venture for the future exploration and development of the Maggie Creek property.

These two companies have granted Noranda an option to earn a 50% interest in the property by expending on exploration and development 200% of monies expended on the property by Skeena and Tenore, up to the date of election by Noranda to earn such interest.

In addition, Noranda has agreed to subscribe for 250,000 shares of each company at a price of $4 per share, such shares to be issued on a flow-through basis.

Noranda has also made an agreement in principal with Galveston Resources to enter into a joint venture agreement regarding about 20,000 acres located near the Maggie Creek property.

Under the terms of the joint venture Noranda will reimburse Galveston 50% of its acquisition costs in acquiring the claims. Thereafter, each company will contribute 50% of exploration and development costs in exploring the claims and, if advisable, in bringing the claims into production.