From the latest MD&A:

Share Capital

On May 12, 2009 and June 3, 2009, the Company issued 9,715,000 (tranche 1) and 12,285,000

(tranche 2) units at a price of $0.20 per unit for gross proceeds of $4,400,000 through a nonbrokered

private placement. Each unit consisted of one common share and one half common

share purchase warrant. Two warrants entitle the holder to purchase one additional common

share at a price of $0.28 until May 12, 2010 and June 3, 2010.The fair value of these warrants

was recorded as $281,735 (tranche 1) and $798,525 (12,285,000 tranche 2).

Pursuant to the private placement the Company paid $133,000 and issued 665,000 warrants

(tranche 1) and $92,400 and issued 462,000 warrants (tranche 2) in finders’ fees. Each finders’

fee warrant is exercisable to acquire one common share at $0.28 per share. The fair value of

these warrants was recorded as $38,570 and $60,060.

At July 31, 2009 Golden Band’s share capital was 152,644,464 issued and outstanding and

190,798,218 fully diluted.

For the quarter ended July 31, 2009, Golden Band’s average trading price was $0.28 per share

(range $0.22- $0.29) on a total volume of 8,907,300 shares (the volume-weighted average price

per share is $0.27). This compares to $0.51 per share (range $0.59 – $0.46) on a total volume

of 4,912,600 shares for the same period in the preceding year.

Authorized Capital

Summary of Share Capital as at July 31, 2009:

Issued and outstanding 152,644,464

Warrants 24,217,625

Options 13,936,129

Fully Diluted 190,798,218

This is far too huge a float for so small a company that is intending to go into production. It may always require further dilution, so the only choice they have after refusing financing is the reverse split. The management has gone out of its way to ensure that the insiders are well cared for with extending warrant expiry and doling out options. A 10:1 split may actually create shareholder value if done correctly.

There is a major opportunity in the throes of the ongoing crash at the end of the present bear market rally to reverse split the shares without the market taking much notice. Credit spreads will widen, meaning credit suddenly becomes unavailable.

Here is an example of a reverse split of shares in an energy R&D company. BTW, Warren Buffet took on a large shareholding in this company. They are now looking to list on the NASDAQ!! They reverse split 30:1.

http://www.resourceinvestor.com/News/2009/9/Pages/Thorium-Power-changes-name-to-Lightbridge.aspx

Making a reverse split work is dependent on exact timing, and should co-incide with the next rally in gold.

Silver/Gold Ratio

Its said the reversal of the silver/gold ratio and the subsequent decline of silver prices against gold signals the end of credit and speculation in the metals and thus can be inferred to apply to wider markets. Its only an extremely accurate indicator when hitting the broad side of a barn. But as a key indicator in the onset of deflationary economic, it may also give us a clue of the next direction of the markets. Note that the Wilder's ADX line was briefly in favour of a major rally in the silver price against gold, and was painting in that direction, but there is no momentum to bring the black line off its bottom. That means a reversal may be in the cards for this ratio, and that the momentum can build to the downside. Certainly, the 'copper top battery' has given out, and the markets seem to be leading this ratio in decline, but theoretically, the panic divestment should come a few weeks' time after the silver/gold ratio reverses sharply.

Supersize: http://stockcharts.com/h-sc/ui?s=$SILVER:$GOLD....istNum=2&listNum=2

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