Conclusions -

I wonder if Sprott realizes that he might be yesterday's story, rather than the issuers like GBN.V that are living in the past. Sprott believes that he has a corner on the resource lending sector.

The Waterton Prepaid Bridge Facility allows for a beneficial change of ownership, you merely need to come up with money to cover the production held in escrow and buy 50% of the outstanding shares. Sprott has the right of first refusal, so they will probably refuse when offered, because they will be obliged to buy 50% of the company at the same time.

Aside from Sprott, there is one person, the managing director, who has more shares than Sprott. He was also the other player in the equity swap game, btw, and may have raised capital off balance sheet in the last year.

As a bona fide director of the company, he merely needs to come up with the necessary capital to pay for production held in escrow, with no beneficial change in ownership, without having to buy any additional shares, if I interpret the Waterton contract correctly.

If you will remember, there's already been a beneficial change of ownership, due to a major swap of directors, who continue to be listed as insiders.

Sprott is very highly likely to excercise his first right of refusal, or probably has already refused content to play a waiting game, leaving the production held in escrow open to other sources.

-F6