via CEO.ca - Rick Rule

Has GBN.V done correctly from a mining perspective? I would say yes they have.

Has GBN.V done correctly from the perspective of raising capital? This remains unanswered, but I would say they may very well have done correctly in a hostile market where raising capital was not available to the company after 2005, when banking deregulation occurred in Canada for derivatives products.

Have they done correctly by investors? No, absolutely not. There are so many loopholes here that it's a plate of spaghetti. And the Ooompah-Loompahs scurrying about conducting unannounced bulk sampling, ore processing, stockpiling and drilling are a little bit much.

So you have to ask yourself, what matters most when the share price is so low it makes a compelling buy, or to hold them responsible?

The biggest question will be whether the managing director and the board of directors will be able to keep their positions, now that the share price is so low.

Investors would be willing to invest if they knew the yield on the stock would be a 6% or better dividend, so they can borrow @ 2%(BofC) and be paid 4%.(in order to compete with equity swaps shorting gold mining companies that yield 4% on your inital capital) Certainly they cannot depend on alpha for gains, given the track record. 10¢ a share per year dividend would be a 2% yield on a $5 stock price. Realistically, a larger capital interest can only yield similar to benchmark rates, so this company can offer better and must be in a position to do so.

This says that this management is backed into a corner if they have left the investor out of the equation.

http://ceo.ca/2014/05/09/rick-rule-what-to-ask-before-investing-in-natural-resource-stocks/

-F6