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via Bloombergtv.ca - Don Coxe
I am unable to correct my obvious mistake of the previous posting, that Cumberland resources was developing the Tower Lake deposit. It was Comaplex that was bought out by Agnico and had left behind a viable gold deposit in the hands of Golden Band.
Much that Golden Band controls has merely fallen into its lap, it is the vertical short form merger with Jolu Development Corporation, 'somebody's subsidiary' that determined the outcome of eventually going private and the in-substantive defeasment.(link library, please.)
The Bre-X film will probably jaundice another generation of hopeful investors against gold mines. But really, the La Ronge Gold Belt was at the time ground zero for the gold mining swindle.
Not that there isn't any gold. You couldn't raise the capital. The irony with Bre-X is that you could raise the capital with no gold being there. A third party must have salted the cores, taking a gold bar or bars worth millions and reducing them with aqua regia, pouring the solution over the cores.
What Don Coxe is talking about holding gold would be an anticipated currency debacle, which the Austrians have been promising for years.
-F6
via MiningJournal.ca - Agnico Invests In Nunavut
Cumberland resources was formerly in the La Ronge Gold Belt working on Tower Lake before moving to the Meadowbank deposit in Nunavut. Cumberland Resources was subsequently bought out by Agnico Eagle.
http://www.canadianminingjournal.com/features/agnico-eagle-invests-future-canadas-north/
Bing Maps - Tower Lake
This aerial photo was taken in 2012. I believe that the Tower Lake deposit is one of the major deposits in the La Ronge Gokd Belt.
-F6
via Guardian - All NAFTA Measures On The Table
There had been a lot of discussion about political stability in certain jurisdictions where an investor might reconsider investing due to the ongoing developments being a negative such as the seizing of mines, or arbitrary imposition of more stringent environmental licensing. Certainly Centerra has been one of the worst examples of this kind of fouled political jurisdiction.
But with more than a little irony calling NAFTA into question has to be a much bigger concern, especially from the point of view how this might affect securities' laws and Canadian companies that depend on both countries' capital wealth to implement their development plans.(The company listing options under GBRIF is an example of taking advantage of NAFTA to restructure the paid-up capital)
This redefines the province of political risk and is far worse than Trudeau's arbitrary imposition of carbon taxes on the resource sector. Or, for example, the Chinese owners of PROCON might now think twice about their investment. The arbitrary imposition of taxes on Americans who invest in Canadian mining companies, or goods and services moving to the U.S. is something nobody contemplated even a month ago.
At the very least, this would hasten Golden Band along, to convert common shares to preferreds, or at least list the preferred's 'pending valuation' and extract the listing from the U.S.
Calling NAFTA into question is clearly positioning for a major recession. What else could it be?
https://www.theguardian.com/us-news/2017/jan/18/nafta-wilbur-ross-confirmation-hearing-trump
$Gold Weekly
We haven't seen the weekly chart in some time, mostly concentrating on interest rates vs. inflation through the TNX/PRII. The gold price has to come from behind, though I liken the rally as being similar to the 2010 - 2011 period. Once over the 233 week EMA, the downtrend aught to be tested again.
The price flag @1124 is in evidence, and us an important indicator in stockcharts.com.
$Gold:CDW Weekly
The $CAD gold price presents an interesting uptrend, as mostly what you hear about in the media is gold's downtrend. The low was in June 2013, and there's been a higher low ever since.
-F6
via Investopedia - What Is The Difference Between Issued Share Capital And Subscribed Share Capital?
Investopedia covers the question on how subscribed share capital differs from paid-up capital. The subscribed portion of the float would be shares purchased through employee options.
via Stockwatch.com, however, you notice that the shares are in a 'not-subscribed' condition. That means that whatever trades might occur are obviously options trades. If you will remember, the company listed on an exchange in the U.S., only to voluntarily delist from the exchange later.
The company is not trading shares per se, but OPTIONS, from the simple fact that GBRIF trade are in a 'not-subscribed' condition. And you have to presume that these options are worth many lots of shares or portions of lots of shares. Could be as many as 1000 share lots per option, or perhaps 500 share lots per option, as little as 50 share lots per option, each time there's a trade.
That would mean the restructuring of the remaining portion of paid-up capital that remains.
http://www.stockwatch.com/Quote/Detail.aspx?symbol=GBRIF®ion=U
via VentureLawCorporation - Rule 144.
With the removal of the legend from the share certificates and the voluntary delist from the American exchange, the company is open to reorganize the paid up capital after the trading halt and the delist from a Canadian exchange.
How that might work exactly will reqiure some explanation if I don't have that right.
http://www.venturelawcorp.ca/rule144_remove_legend.html
via Capshare Blog - Why Private Companies Don't Need To Issue Stock Certificates
What caught my eye in this article was the following quote:
"3) Empowers Companies to Act As Their Own Transfer Agent
Shareholders can no longer just sell or transfer their certificates without the company’s knowledge. Because there are no physical certificates, the company’s ledger is the official representation of all shares outstanding, so in order to execute a legal transaction, shareholders are forced to engage the company in a formal process that can be executed and recorded properly.
This makes it easy for companies to act as their own transfer agents. There’s no need to pay fees for someone else to handle this."
So Golden Band has essentially gone private in a number of steps and can act as its own transfer agent, which would explain the trades of options in GBRIF.
https://www.capshare.com/blog/why-private-companies-dont-need-to-issue-stock-certificates/
-F6
$TYX:!PRII Weekly
If I were to make a guess just where interest rates were to lag inflation, then I would draw a line connecting the most obvious points at the bottom of the TYX/PRII chart. This chart drew my curiosity if only because I was focussed on the TNX/PRII weekly chart.
But this chart holds the long term prospects for gold, regardless of which way inflation or interest rates may go, as long as rates remain below inflation.
The third downward leg in a triple waterfall crash would see new highs in the gold price.
via Deloitte - Insolvencies
I was dismayed that the end of the calendar year broughht no resolution to the Golden Band fandango. I had been contending that the pro-forma CCAA filing in the Saskatchewn Court Of The Queen's Bench File 643 was removed somehow from the body corporate of Golden Band's insolvency inder the BIA, may actually be where the rubber hits the road.
Being the only other filing in Saskatchewan at the same time as Golden Band, I have to assume that somehow both the cost of capital and the asset were severed from the body corporate, and that a proceeding, or one like it would be where the rubber hits the road.
Further dismay was brought in when this specific filing had an extension of its CCAA court protection until June, 2017. Big question mark. ??????
The delay here is well over a year when the normal term for an insolvency or court supervised reorganization would take only 75 cslendar days.
The key here would be 'court supervised reorganization', and as I have demonstrated, a quasi-reorganization.
http://www.insolvencies.deloitte.ca/en-ca/pages/101133330SKLtdand101149825SkLtd.asp
via Investing Answers.com - Warrants
In a quasi-reorganization, and a court-supervised one at that, where the agency of the crown is unmistakeable, the company is in a state of technically going private. Its shares no longer trade, and requires no capital raise.
But as Investing answers points out, a detacheable warrant may be issued in the interest of a third party. That may be in the interest of raising captial for a third party.
So if each preferred share were issued with with a fully detachable warrant with s five year term, then the third party might see a consistent inflow of capital.
As investinganswers.com points out, that detachable warrants must be detached in order to recieve distributions.
Why not just let holders of preferred's cash in their warrants themselves over the five year period, and buy shares in the third party with their own distributions?
http://www.investinganswers.com/financial-dictionary/optionsderivatives/warrant-861
via Financial Post.com - GoldMoney
Recently the Financial Post came out with an interesting story on the newly formed GoldMoney out of Bitgold, GoldMoney and Schiff Gold. Now this is an interesting development to say the least!
What's more, GoldMoney will now be using the Royal Canadian Mint for the purposes of storing thier gold.
But I have contended for a very long period that both Sprott and the mint avsiled themselves of unrefined doré straight out of the mines, which was probably the Ep Zone, the Jolu mine, the Star Lake Mine and Roy Lloyd.
GoldMoney is probably looking to raise capital through the markets, which may include warrants allowed to GBN prefered's, if only because they have chosen the mint. The mint is the thread that holds all these companies in the same context.
Will GoldMoney now be raising captial and also including Golden Band if only because they get a staggering discount for the gold in an unrefined state?
There is also a significant component to this possibility, since reporting requirements are virtually nil.
-F6
$Gold Monthly
The gold price chart in $U.S. at stockcharts.com has a fairly reliable indication of price highs and lows in the form if a price flag that pops up when prices change direction. The weekly chart has already seen its price flag come up, and what should follow is a price flag for the low on the monthly chart.
I was anticipating a forward skew in the futures market, if not signs of backwardation which didn't materialize. We're not 'there' yet, but you would be looking for instances of extreme low volatility on the $GVZ to presage changes of trends.
What has dominated the $U.S. gold price is the derivatives market, namely the use of a volatility smile in the 2008 correction and the use of a massive volatility skew starting in 2010, and ending in December 2015. A sign that the structure of derivatives in bullion futures has changed entirely is the huge volume in the last month.
The TNX/PRII gives another context for the fundamentals and which way the gold price is headed.
'Trade' in GBRIF
In what is perhaps the first sign of life for quite some time was the trade in GBRIF last Wednesday, before the close of the year. This had the effect of changing the value of the shares held in my account. If this trade was like the trade of grey market OTC options on golden band shares on the 22nd. December, it would mean 2000 options in GBN shares were traded on the OTC grey market worth 1000 shares each.
I had presumed that the fiscal year end is by default the end of calendar 2016, and that the settlement of the going private transaction, the true effective date of the amalgamation announced in 2010, where the deemed continuance of the amalgamation closes, would have to be Dec. 23., the last taxable day.
However long this holdover will take is anybody's guess at this point. Perhaps there will be another change in control, or some requirement to provide legal notice going forward.
via Mcarthy Tetrault - Going Private Transactions In Canada
A primer on going private transactions in Canada is clear enough, but does not explain how a going private transaction and an amalgamation squeeze out work together. But as you can see, going private transactions are pretty common.
The shareholder not intending to be a beneficial shareholder was hoisted by their own petard, crushed under the daunting share price declines and pro-forma insolvency.
So the going private transaction was undertaken in a series of steps, where the majority of the minority held sway each step of the way.
http://www.mccarthy.ca/pubs/goingprivateincanada.pdf
via FinancialPost.com - Hodson
According to Hodson, I may as well just shoot myself.
-F6