What Is The Value Proposition?

The company stipulates in its May 2014 "fact" "sheet" under the corporate materials section of its website that no material results will be released, since their mill is presumably shut down, and will be for months, until November.

But, since they have lied in the past with the escrow agreement, and provided gold for a gold-backed note with Sprott long prior to commercial production, you can assume that as a shareholder, you are being prejudiced from the point of view that material information is being withheld, and thus are taking unprecedented losses.

As Willy Wonka's chocolate factory was kept running employing the Oompah-Loompahs, so their mill is processing ore and stockpiles replenished, even though they wish to convey the impression that all is for naught.

You have to ask yourself- why on earth would you bother?

Considering that their gold commitment is up, and that they are likely to form another type of commitment to replace it, and that escrowing is part of the financial structure of the company, the new commitment is probably for 100k oz. to be supplied yearly, in a payment-in-kind mezzanine capital arrangement.

That would mean their mining project is/will be yielding 21 g/t based on a nominal processing rate of 400tpd.

Whoever moves to buy the company has to come up with the gold for the new commitment up front, once a beneficial change of ownership occurs. So you can see why the original prepaid gold commitment is still in place, until the new agreement is closed, in order to prevent any buyers from snapping up the company.

But they can also come up with a royalty type arrangement, like every other gold company in Canada.

There is one business day left until the time is up to announce after the Waterton gold commitment closed May 9 to announce new developments.

http://www.goldenbandresources.com/images/file/Corp_fact%20sheets/GBN_Brochure_May_2014.pdf

One place the company might go to come to an arrangement is Franco Nevada. You can see that Franco Nevada buys royalty claims on just about every market-darling gold mining company in the world, and they are all otherwise doing well. Comparisons are available here:

http://www.franco-nevada.com/royalties/assets/gold-canada/timmins-west-ontario

If this company was run by sane people, rather than megalomaniacs, this is what they would do.

-F6