Default Notice -

The company is probably not in default, from the perspective that the notion that PROCON lending to GBN.V in order to keep operating is preposterously absurd. Why did the default only occur now and not years ago when this agreement was supposedly entered into?

All costs were prepaid by the initial tranche of asset-based finance, and is to the tune of $40m per annum, totalling ~$200m. for five years of operations.

What the company intends is a going private transaction under cover of a presumed bankruptcy.

This is similar to what occurred to Colossus Minerals, Allied Nevada, Rubicon Minerals and now Golden band Resources.

Why would they build four mills and engage in mining in the first place? Why was it only ~$20m. that results in a default notice and not the liabilities, which are far larger, by several times? Notice they did not declare CCAA, or receivership. Why would they not do that? Why would Netolitzky buy tens of millions of shares in the last three years, doubling his position, if he was contriving to default eventually anyways?

What they desire with a pro-forma balance sheet and filings is to excercise control over the company, squeeze out the shareholders, and prevent anyone else from taking over the company, such as making an offer for the company during the default proceedings.

The company has the wherewithal to run a business, but instead they prefer to give people the business.

The bankruptcy proceeding, or this default (if that's what it really is) allows any creative form of legality to proceed, as the court proceeding will declare all prior rights null and void, such as perhaps rights to ownership. What was determined in the last shareholder vote, for example? No results of this vote and what was proposed as a resolution were made public.

The default is pro-forma like everything else in the filings. But this proceeding may also be struck down, as can the rest of the filings.

As I had indicated in the profile, The La Ronge Gold Belt is ground zero for the gold mining swindle.

As soon as a legitimate mining operator enters into the space snapping up prospects, such as Silver Standard Resources, a default occurs. What a co-incidence.

-F6