via Bloomberg Canada

Sprott announces shadow banking services for junior mining in Canada.

The total aggregate sum of capital raised in two tranches, one by asset-based financing, and one by revenue-based financing for GBN.V is $1.4b.

Sprott listed investments made in their physical gold trust totalling $2.2 b., which GBN.V would access $1b. $200m. of this was used to pay costs on five years of production. Roughly based in $1000/oz. CAD. All gold produced out of the mine, the EP Zone pay streak of Supergene enriched ore was refined at the mint.

Once GBN.V was in a position to do so, the second tranche of financing, or capital raise, where The Royal Canadian Mint is a counterparty to GBN.V, was raised in the amount if $400m. This came out of the stockpile that had been built at the Roy Lloyd Mine. (curiously enough, the same amount in the story)

When all is said and done, the second tranche, some $400m., added to impairments, some $90m., and $200m. in costs over five years, the initial asset-based tranche will cover the accumulated deficit since commercial production was declared. All to be used for development.

Not only is GBN.V sitting on a lot of money not reflected in the stock,(you will note that development and capital raise have been kept entirely secret) but they are probably sitting on an historical mineral discovery.

http://bit.ly/1WlS4ok

http://bloombergtv.ca/2016-03-11/shows/the-daily-brief/the-daily-brief-clips/gold-gurus-at-sprott-want-to-be-shadow-bankers-for-canada-miners/

http://bit.ly/1Mj8VCL

http://bloombergtv.ca/2016-03-14/shows/the-daily-brief/the-daily-brief-clips/gold-futures-drop-as-dollar-gains-amid-improving-u-s-outlook/

-F6