The Devil Is In The Details

If I were the owner of the North Lake property, and I saw the JV agreement with Masuparia, I would be massively furious with the company.

Because all I would have would be these warrants or shares on my books.

GBN.V might be warding off potential up-front costs, but they're not fooling anyone about unlocking shareholder value. If anything, shareholders are more shackled to their investments than ever.

Netolitzky himself is sitting on staggering losses, if you count up all of his shares.

For now, investors are rightfully concerned about the numbers not adding up. Because they don't, though I have to say that the Q3 report tallies up nicely. Where all of these numbers come from just says to me that they want to issue shares, but I think the share price prevents that.

Paying out 10% of revenue may be a far stretch of the imagination, but then again sudden changes to amortization or imaginary liabilities make that a possibility. Why this company should be making investments when they appear to be in penury and can barely make ends meet at these prices is another question.

What's more, if the following article describes what people are doing with their money and taking risks to buy investments, then dividends make all the more sense. The taxes being paid by the company run up to 40%, for the priviledge of having the DFO publicly vandalize your project. This under a conservative government with a conservative government in the province, which is a wheat, potash and uranium producer.

Gold miners truly make absolutely terrible investments.

http://business.financialpost.com/2012/04/27/bad-financial-advice-takes-a-staggering-toll/