Outlook -

The PWC accounting manual under IFRS(listed under link library) states that the defeasment process can take 30 - 45 days. The voluntary delisting occurred on Aug. 18. So by the end of September presumably the defeasment will have occurred.

So we had the no-bid period, the notice to default, the pro-forma bankruptcy or restructuring, and now the defeasment must take place. Not the least would be included in the process is an asset transfer.

Once the asset transfer takes place PROCON, holding the equity interest in Golden Band will return the share to the company which it was holding in lieu of prepayment of a years' operations, which counts as a liability.(note that every year liabilities which arose out of nowhere managed to extinguish yearly without causing a default - until this year)

The company can engage yet another defeasance irrevocable trust for the next period, carrying on as before, foreseeably for the next four years, but with the common shares converted into preference shares, which is known as an extinguishment.

With the issuance of another pro-forma technical report, this is a strong indication that the company will continue as before, under a cloak of secrecy, or are acting in advance of some foreseeable rout in gold prices.

At the same time elsewhere, you may have a market rout, based on summer cycles in volatility since 2014. Interest rates will have to decline markedly in this new development in order that gold prices remain supported.

-F6