Noront Resources Ltd. (“Noront”) announces that it has been advised by Probe Mines Limited (Probe) of Toronto that it does not plan to proceed this year with further exploration on the Company’s Double Eagle project located in James Bay Lowlands, northeastern Ontario and has returned the property to the Company, which now holds a 100% interest.
The Company further announces that it has entered into an option agreement with Condor Diamond Corp. and Greenstone Exploration Company Ltd. (Condor/Greenstone) to acquire two claims consisting of 8 units adjoining the Company’s Double Eagle project on the following terms:
Subject to all regulatory approvals, Noront has agreed to issue 175,000 shares and complete, during the calendar year 2007, a minimum of one diamond drill hole to test several highly rated airborne geophysical targets established on the claim group and confirmed by ground geophysics after which it will have earned an undivided 50% interest on the claims, and further have the right during the second year of the agreement, to earn the balance 50% upon the issuance of a further 225,000 common shares of the Company. Condor/Greenstone shall retain a 1% net smelter royalty which may be purchased by the Company at any time upon payment of the sum of $500,000 and/or at the Company’s option, issuance of an equivalent number of common shares of the Company.
The Double Eagle project consists of 34 claims comprising 533 units encompassing an area of 8,528 hectares (21,320 acres) in the James Bay Lowlands in northeastern Ontario adjacent to Spider Resources KWG joint venture where three significant volcanogenic base metal massive sulphides have been discovered.
The Company is currently budgeting for a diamond drill program to be conducted on the newly acquired claims this summer as well as perhaps a follow up program covering the Company’s Double Eagle claims or alternately the Company may seek a new joint venture partner with one of several parties that have shown an interest in this large project.