via Financial Post

It wouldn't come as a surprise if GBN.V faced a crackdown on its disclosures. I don't believe that GBN.V has avoided its responsibilities and decided to beat their own path. In fact, the way I see it, they followed the rules almost a little too literally.

They had already had a regulatory reporting problem very early on in 2002, as they attempted to include information that did not exactly fall under the 43-101 regulatory framework, although the company had already completed work on EP and Fireweed in that time.

But considering the potential for fraud and serious errors in the gold mining sector (and its very large) and the fact that the banks would never allow anything to happen to endanger their profitable fee-generating massively leveraged delta hedging strategies, GBN.V could be facing a harsh regulatory response over something this might be largely imaginary.

I can certainly see this happening with the unaudited financial reports, or certain information not forthcoming to the shareholders, such as not revealing the results of the SGH surveys over the Benjamin Lake area. More than likely they will have to lay their cards on the table for the end of this fiscal year, which they are under no obligation to reveal until the end of August.

The DFO findings that placed the company in the penalty box for four years is certainly of this type of calamity. (really, what IS happening after all with the TIA? - Q4 processing?)

Very good article, btw.

Junior minors feel heat as regulators crack down over disclosures

Peter Koven May 4, 2012 – 8:31 PM ET

Securities regulators are back on the warpath when it comes to junior miners. In the past several months regulators have been busy sending a harsh message to companies that there will be consequences if they don’t follow precise disclosure rules related to their projects. Miners have lost out on financings and had trading of their stocks halted after getting in the crosshairs of securities commissions, a development that only adds more risk to an already risky business.

Crackdown On Disclosures

-F6