via TMXMoney.com - MNT Financials

The liabilities on Golden Band Resources' balance sheet pop up out of nowhere in 2013. One year, a $50m. and a $60m. liability were added together, then every year after, ~$100m.+ in liabilities became a fixture in GBN.V's balance sheet.

This stomach-churning entry with no obvious source of revenue can be resolved by adding together two figures from The Royal Canadian Mint's balance sheet, which matches this assumption. You have to look for entries that increase with the 2013 fiscal year.

The two entries added together are 'Long-Term Liabilities' and 'Long-Term Debt.' These two figures added together match the assumptions in GBN.V's balance sheet. This is where the swap of balance sheet items occurs. The $100m.+ now repeated every year is actually two items swapped off The Royal Canadian Mint's balance sheet onto Golden Band.

If there is money doled out in the swap to GBN.V, it would probably come from the MNT.U balance sheet, which is not open to the public. If you look at the prospectus from the MNT.U, they retain RBC for capital lease obligations. Thus through a capital lease obligation, and a long-term liability entry, you can formulate how The Mint is a counterparty in a revenue-based financing. RBC would be the intermediary.

This is how much gold the mint came along, but swapped perhaps 25% less cash than the total liability to GBN.V. Notable to the discussion is how the fiscal year in The Mint balance sheet is delayed by one year and GBN.V's is forward one year. Thus it will take an additional two years to complete the assumptions on The Mint's balance sheet, but GBN.V may already be completed, and has begun construction and is no longer legally an agent of the crown.

On any balance sheet you would deduct assets from liabilities, but in the case of GBN.V, this is an entirely erroneous assumption. The liabilities and assets represent separate tranches of financing. Cost of revenue is separate and the entry assumed to be 'Taxes paid on drilling'

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http://web.tmxmoney.com/financials.php?qm_symbol=MNT

-F6