Conclusions

In the Waterton Prepaid, the clause which refers to change of ownership must have been invoked, resulting in the resignation of the directors.

Waterton was looking for distressed assets, and GBN.V is most certainly one of them. Control of the Waterton Prepaid was handed to Procon, because Waterton was going to move on Netolitzky.

But that suggests something else. Gold prices are not going to stay where they are, and they're not going to bottom out tick-for-tick as they had during the '70's.

That means Sprott is on the hook for tens of millions of dollars they would rather not pay to GBN.V. It would be in their interest to invoke that same clause and buy 50% of the outstanding shares, which would force them to buy the gold held in escrow before having to pay a much higher price. They can always sell the shares they don't want at a higher price.

I wonder how Sprott will explain it to their clients that they let such an opportunity slip out of their hands, when they could be paying for gold at discounted rates.

-F6