News -

What do I make of the company's latest news release? They hired Prime Capital years ago to advise on the off-balance sheet arrangement for the asset-based financing, and the swap arrangement with no prospectus of the revenue-based financing, owing to the fact that the Mint is the counterparty, and requires no prospectus.

With the second news release, it looks every bit like they are going to carry out a shareholder squeeze out and amalgamation with a private entity. That would mean they can carry out the deal with impunity if they have an absolute majority, and the bulk of the smaller shareholders were physically squeezed out during the no-bid period.

They have absolutely no desire to offer the company for sale, and since there are no bidders, they can carry out the squeeze out. (similar situation to RMX.TO)

That means you have to be in the top 50 shareholders and a shareholder of record since Sept. 21, the last shareholder of record date. Of course, this puts up barriers to ownership.

Also, they are very anxious to control your perception of the company and will say anything to prevent you from gaining access to information. They could very well be attempting to inveigle the curious with another round of chaff.

Why would they take the company private after all, if they complete an advanced stage of development and completely derisk the stock to the point of writing off the accumulated deficit and reaching the goal of 250k oz. of production? The stock would be worth $10 a share with gold prices above $1500/oz. CAD.

Sprott Physical Precious Metals ETF

The Sprott Physical Precious Metals ETF engaged in certain investment activities to accumulate gold. The total amount of gold accumulated was perhaps 1.5 m. ounces. Over this investment period of 2010 - 2012, $CAD gold prices averaged $1500.

What this implies is if the gold is presumed to come out of the pay streak of the EP Mine, The Star Lake Mine, and the Roy Lloyd Mine, which were all operational throughout this period, then Sprott obtained probably 1.5 m.+ oz.

The capital accumulated by GBN.V was probably equivalent to 1m. oz. at the time. So GBN.V paid a staggering 30% rate of interest in order to raise the capital.

Gold prices have been averaging over $1500/oz. CAD since The Bank Of Canada's interest rate cut.

http://bit.ly/1PnLwBa

-F6