Conclusions -

Golden Band Resources is no longer able to keep secrets. they are unable to control perceptions by lying to the public. The balance sheet has been debugged from all its loopholes, and the source and amount of capital raise is exposed.

For the asset-based financing with Sprott, there are certain assumptions that must be made for the entire financing to be revealed. If you assume that the depreciation and depletion of ore from the EP Mine is $100/oz., then you may be mistaken in the number of ounces produced for the asset based capital raise. If you believe it's $200/oz., you may be overestimating the depreciation cost.

Safe to say that the interest rate, or discount on the asset based financing is 15%. The per ounce assumption on production is probably $1000/oz, therefore. Or to look at it in another way you are costing the depreciation in assets @$150/oz. if you now divide $80m. by $150, you get 533k oz. produced out of the pay streak in the Supergene enrichment portion of the EP Mine for each of two years. This goes into Sprott's Physical Gold ETF stored at the mint.

The revenue based financing, which is the cost assumption on a separate tranche of financing, covers the 'cost to mine' over the entire period of the six years of production since it began in 2010. The asset-based financing is double the size of the revenue based financing, which is probably based on 500k oz. in total.

The asset-based financing has to cover the total amount raised in the revenue-based financing, which is being spent on the property and is tabulated into the accumulated deficit. Notably the exact amount raised in the revenue based financing is probably being poured into mill upgrades, though the province lists construction permitting as commercial buildings.(it should be industrial)

So you have $700 million spent on the property, ($300m. was reported in the balance sheet and presumed $400 million is being spent) and at least the same amount raised in the asset based financing, in order to write down the deficit. This is the size of the numbers we're talking, despite the share price with no bid under it. And nobody the wiser.

Also you want to consider that once the mill upgrades are completed, which was started last October, the company is no longer having to finance so this adds ~25% to the bottom line.

But the company has a serious legacy problem to contend with. That is the public evaluation of the share price or value in the company. You can get that with the shares publicly traded, but not if they go private.

Asset-based financing in orange, revenue-based financing in purple. You cannot subtract assets from liabilities, since the liability is part of a swap and another tranche of financing, the revenue-based financing.

http://bit.ly/1Kwun6l

-F6