2008 Financial Crisis - GLR

One of the casualties of the financial crisis was GLR resources. They had obtained an agreement with Blackfish Capital to finance the startup of production in Northern Saskatchewan, and I remember having seen photos of equipment deliveries made to a hangar in Uranium City.

But with the onset of the financial crisis, Blackfish Capital probably thought that GLR would not be able to raise the CAPEX for the mining project and pulled out. If I remember correctly, the amount was $20m. CDN. GLR went bankrupt as a result.

By no strange co-incidence, this is the same amount required from Waterton, and I suspect that the equipment might have now made its way to La Ronge three years later. So GBN.V might be implementing its strategy of a small CAPEX production increase to satisfy guidance on 100k. oz. with the equipment conveniently sitting in a hangar just a drive from La Ronge. Certainly the assets from the GLR bankruptcy would have been sold immediately.

I didn't see Linear Gold, or its new configuration after the merger, Brigus gold having implemented production or mention in any way, or that they have any equipment positioned for use and will have to raise the CAPEX and have more equipment on order.

http://www.newswire.ca/en/story/411403/sale-of-goldfields-mine-assets

Note that Brigus Gold sees no problem with reporting their cash operating cost for the Box/Althlona project, as per their PEA:

http://www.brigusgold.com/property.asp?p=2

My guess on GBN.V's cash operating cost should be in the vicinity of ~$671/oz. CDN, but the guidance is for $900/oz. all-in. Free cash flow goes unreported and has been rubriqued under long term liabilities.

-F6