Conclusion -

If the company structured an irrevocable trust using defeasance, then the transfer of the lending facility from Waterton to PROCON meant that instead of a three year term left for the defeasance to conclude, there was an extra year.

Thus you can add all of the costs of capital including the secured and unsecured tranches paid to PROCON during the pro-forma insolvency, impairments(2013), operational costs, and the sum of liabilities which were seen each year for three years.

That the company is a non-reporting issuer means they can now withhold any and all information related to financial transactions, are not subject to BCSC scrutiny, so can directly misinform on technical information, or only provide dated historical facts and no drill results. There was clearly a significant amount of work undertaken in mining and tunnelling, but no operational details were ever reported.

The problem now becomes how long the company will resort to secrecy. I would say that since they have engaged in secrecy for years, this has now become part of the corporate structure, and that they will continue in this manner indefinitely.

The structure of their financial dealings over the years comes from the PWC manual. The fourth year added started with the BIA proceedings.

http://bit.ly/2bHFAGx

-F6