CapT

$26M is for exploration in the usual flow through arrangement, but as indicated I was not sure if CRA would grant any "exceptions"? If the money is availbale until the end of next year as NeophyteS said (i.e. 31 Dec 2015?) then it may be possible to burn through this stack of money by having an intensive drilling program, e.g. a few drills on Borden Gold to prove out the wedge zone and other extension of the current resource, including the lands on the other side of the lake (near, but far enough from, the cottages) assuming that the land deal will done shortly...and the East Limb of course.

However, I have a nagging question about this clause (underlined and bold) in the NR .Can some expert out there explain what that means (in the context of the time limit, spent by end of 2014, for the $26M)?

"Proceeds from the Financing will be used for Canadian Exploration Expenses ("CEE") (within the meaning of the Income Tax Act (Canada)) which shall qualify as "flow-through mining expenditures", for purposes of the Income Tax Act (Canada), related to the exploration of Probe's exploration projects. The Company will renounce such CEE with an effective date of no later than December 31, 2014."

PRB has enough cash (shares would be better) to pay for the lumber people, even for the entire shot. But for estate planning perhaps some royalty would be more preferrable from the tax consideration.

According to my information, The current exploration cost of drilling on the 50% JV has been borne by PRB. The JV calls for a 50% development expenditure from the lumber folks. I don't know if there is the RoFR or not, but if the lands are not sold to others then PRB would carry the development cost alone and a Royalty (something like 2%?) would be paid to the lumber people. Note, I did not have an opportunity to read the JV agreement, hence these details should be checked out.

If Dave has some geophysical indication (e.g airborne or ground surveys) along with the surface samples/trenching etc he would know where to sink his drills. How about half a dozen, or more, drills (for Swiss-cheese drilling) on the East Limb. That would burn through $26M over 1.5 years, lol!

GLTA,

goldhunter