via FT.com - A Market For Corporate Control

What the 'agreement' recently strongarmed into place with PROCON effectively does is hand control of the company over to the mining subcontractor. And PROCON holds absolutely no shares(as far as I know).

PROCON was a majority shareholder in Lincoln Mining before they were required to divest their interest because the 60% owner of the mining subcontractor is a Chinese company, and they were in proximity to a naval base. (~in the Nevada desert~) It would not be a far stretch that PROCON may also be a part of the majority shareholders along with Sprott and Netolitzky.

Without any information to go on provided by the company as to who the majority shareholders are, you have to assume that PROCON is one of the central players with a large interest, replacing their loss of their majority interest in Lincoln Mining, and principals of Lincoln Mining serving as dummy directors, and CEO.

http://lexicon.ft.com/Term?term=market-for-corporate-control

via Lexology - Lock -Out Agreements

What the filings on May 18 contain are essentially a lock-out agreement.

During the no-bid period, tens of millions of shares were bought over a period perhaps 14 months from November 2014 to February 2016. (cessation of operations was presumably in February, 2014) The shareholders frightened by this no-bid period(and it was harrowing)divested their shares, sometimes in the millions of shares. They were squeezed out in favour of an insider wanting to increase their position.

Now, with the 'new'(nothing new about it) agreement, or shotgun wedding, PROCON is prepaid in unrefined gold for services yet rendered over an unspecified period, provides the gold ounces out of the ground to the buyers with no conditions(yet) in case PROCON fails. They seize the mine if the mine does not produce.(no "force majeur" clauses)

All of this was during the trading halt which was pro-forma and contrived years in advance. You cannot sell your shares, terrorized though you may be, you cannot make a hostile offer for the company because there's a stay of proceedings. In fact, if you were to buy the GBN.H, you might be better off taking down PROCON first.

They ARE the biggest non-unionized mining subcontractor in Canada, and is the source of political pressure in Canada to provide jobs for foreign workers ahead of Canadians. For example, if federal labour laws passed into law under the conservatives are struck down under the Liberals, then a federally regulated mining subcontractor may be subject to labour organization.

http://bit.ly/1qOC43K

via Digging The Dirt - Lock-Out Agreements

Mostly you find references to lock-out or exclusivity agreements in UK law. That's because anti-competitive agreements are not lawful in Canada or the US. But in reviewing closely held companies by insiders, it might also help to review the benefits and drawbacks of lock-outs.

PROCON has gone to great lengths re-writing Canadian law, or contorting the law to their own benefit. They appear to be the sole beneficiary in the La Ronge Gold Project. This is the primary risk to GBN.H, since as a shareholder, you too are locked out.

http://www.jondickins.com/2012/01/locked-out-how-effective-are.html

-F6