Granite Gold Mine Ltd. and Diamond Drilling Ltd. entered into an agreement whereby Granite Gold Mine Ltd. would provide its mining claims for exploration, and Diamond Drilling would provide drilling services at no cost to Granite Gold Mine Ltd. in an effort to determine the extent of an ore body within the claims area. The two companies agreed to form a third corporation that would operate the mine once the quantity of ore was determined. The third company, to be called Mine Operators Inc. would be jointly owned by Granite Gold Mine Ltd. and Diamond Drilling Ltd. Each would own 50 percent of the shares of the corporation, and each corporation would pay 50 percent of the start-up cost of the mine. The two corporations agreed that ownership of the mining claims would remain with Granite Gold Mine Ltd., but all gold mined by Mine Operators Inc. would be owned by Mine Operators Inc. subject to a royalty to Granite Gold Mine Ltd. of 10 percent. Exploration by Diamond Drilling Ltd. revealed a large ore body, but before a mine was started, Diamond Drilling Ltd. ran into financial difficulties. Several of its creditors who had supplied services and goods to the mine exploration project decided to take legal action against both Granite Gold Mine Ltd. and Diamond Drilling Ltd. to recover their debts. Discuss the issue raised in this case, and the arguments each party might raise. Render a decision.