What i have figured out so far is to list the default search path for gcc in MinGW is to issue the command
$ gcc -### -o foo foo.c > /c/dev/gcc.txt
gcc.exe: error: foo.c: No such file or directory
Using built-in specs.
COLLECT_GCC=c:\Tools\MinGW\bin\gcc.exe
COLLECT_LTO_WRAPPER=c:/Tools/MinGW/bin/../libexec/gcc/i686-w64-mingw32/4.9.1/lto-wrapper.exe
Target: i686-w64-mingw32
Configured with: ../../../src/gcc-4.9.1/configure --host=i686-w64-mingw32 --build=i686-w64-mingw32 --target=i686-w64-mingw32 --prefix=/mingw32 --with-sysroot=/c/mingw491/i686-491-posix-dwarf-rt_v3-rev0/mingw32
--with-gxx-include-dir=/mingw32/i686-w64-mingw32/include/c++ --enable-shared --enable-static --disable-multilib --enable-languages=ada,c,c++,fortran,objc,obj-c++,lto --enable-libstdcxx-time=yes --enable-threads=posix
--enable-libgomp --enable-libatomic --enable-lto --enable-graphite --enable-checking=release --enable-fully-dynamic-string --enable-version-specific-runtime-libs --disable-sjlj-exceptions --with-dwarf2
--disable-isl-version-check --disable-cloog-version-check --disable-libstdcxx-pch --disable-libstdcxx-debug --enable-bootstrap --disable-rpath --disable-win32-registry --disable-nls --disable-werror
--disable-symvers --with-gnu-as --with-gnu-ld --with-arch=i686 --with-tune=generic --with-libiconv --with-system-zlib --with-gmp=/c/mingw491/prerequisites/i686-w64-mingw32-static
--with-mpfr=/c/mingw491/prerequisites/i686-w64-mingw32-static --with-mpc=/c/mingw491/prerequisites/i686-w64-mingw32-static --with-isl=/c/mingw491/prerequisites/i686-w64-mingw32-static
--with-cloog=/c/mingw491/prerequisites/i686-w64-mingw32-static --enable-cloog-backend=isl --with-pkgversion='i686-posix-dwarf-rev0,
CFLAGS='-O2 -pipe -I/c/mingw491/i686-491-posix-dwarf-rt_v3-rev0/mingw32/opt/include -I/c/mingw491/prerequisites/i686-zlib-static/include -I/c/mingw491/prerequisites/i686-w64-mingw32-static/include'
CXXFLAGS='-O2 -pipe -I/c/mingw491/i686-491-posix-dwarf-rt_v3-rev0/mingw32/opt/include -I/c/mingw491/prerequisites/i686-zlib-static/include -I/c/mingw491/prerequisites/i686-w64-mingw32-static/include'
CPPFLAGS= LDFLAGS='-pipe -L/c/mingw491/i686-491-posix-dwarf-rt_v3-rev0/mingw32/opt/lib -L/c/mingw491/prerequisites/i686-zlib-static/lib -L/c/mingw491/prerequisites/i686-w64-mingw32-static/lib'
Thread model: posix
gcc version 4.9.1 (i686-posix-dwarf-rev0, Built by MinGW-W64 project)
So there right at the end is the "offending" path, some script that should extract the -L paths, is bringing the ' character in, at the end of the line.