Company Profile

I have updated the company profile.

via Canadian Insider - Warrants Expire

An interesting development in the company financial structure on Thursday was the expiration of millions of warrants.

Information on the fully diluted count of shares will have changed substantially, and reported in the Q1 report for fiscal 2015, but could be listed on the company website before September.

Both Sprott and Netolitzky participated in numerous financings over the years to no avail. They are both sitting on staggering losses to date.

This might also indicate how Sprott and Netolitzky participated in off-balance sheet activity, trying to raise capital, since very little effort has been made to promote value, and warrants are left to expire.

http://canadianinsider.com/node/7?menu_tickersearch=gbn

May 9, 2014 - Gold Commitment

The Gold Commitment was to have been fulfilled as of Friday, May 9. No news of any activity or financial change was released at the close of the week, though very likely any transaction would have transpired in either March or April.

If they managed to sell 3 tonnes of gold and raised $140m. CAD + of capital, and come to some new financial arrangement, then the information on this activity cannot be legally withheld.

This activity would be in the Q4 fiscal 2014 time period, which ended April 30, 2014. Final results are required to be reported by the end of August.

The Sprott Prepaid Gold Note and Waterton Prepaid Bridge Facility along with Preliminary Economic Analyses were all reported in the Spring, as well as preliminary economic analyses.

The notable discrepancy is that Sprott's Gold Note, which was prepaid and payment-in-kind type of arrangement presumably preceded production, whereas it was much more likely that the company was in production at the time, without any indication that it was doing so, prior to the establishment of commerial production. Notable also is that company news relases stated that the Sprott Gold Note was settled, yet continues to be listed as a liability in quarterly reports.

IF it was meant to back credit default on equity swap derivatives, then the value of ~$160m. CAD would be the insured amount. This is probably equivalent to the value of dore bars held in escrow. (credit default insurance is 5%)

via SafeHaven - CPI-adjusted Gold

You have to wonder why gold prices are not coming down, stubbornly remaining above $1400/oz. CAD. The following chart might explain how gold prices are merely at their inflation-adjusted average over several hundred years.

There have been major reversals of gold prices prior to recovering and hitting its peak over the entire history of inflation-adjusted gold prices. My guess is that a gold price advance such as the 1970's is probably not to be repeated.

Very unlikely that boom times are here, so gold prices should continue to rise while markets come off.

http://www.safehaven.com/article/33729/gold-boy-is-it-frustrating

-F6