West High Yield closes first tranche of financing

Dec 27, 2022

2022-12-23 14:15 ET – News Release

Mr. Frank Marasco reports

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD. ANNOUNCES FIRST TRANCHE CLOSING OF OVERSUBSCRIBED PRIVATE PLACEMENT

Further to its news release of Dec. 13, 2022, West High Yield (W.H.Y.) Resources Ltd. has closed the first tranche of both of its previously announced private placement offerings of flow-through units of the company and ordinary units of the company. The flow-through units were issued at a price of 50 cents per flow-through unit and the ordinary units were issued at a price of 42 cents per ordinary unit.

Each flow-through unit consists of one common share of the company issued on a flow-through basis under the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each flow-through warrant, together with 70 cents, entitles the holder thereof to acquire one additional common share until June 22, 2024. Each standard unit consists of one common share and one common share purchase warrant. Each standard warrant, together with 70 cents, entitles the holder thereof to acquire one additional common share until Dec. 23, 2024.

The closing consisted of the issuance of 1.57 million flow-through units for gross proceeds of $785,000 and 399,000 ordinary units for gross proceeds of $167,580, representing aggregate gross proceeds of $952,580. In connection with the closing, the company issued 113,942 non-transferable share purchase warrants to and as directed by GloRes Securities Inc., equal to 6 per cent of the number of units issued under the closing to subscribers introduced by the broker and is required to pay the broker a cash commission of $55,056, being 6 per cent of the aggregate proceeds from the number of units sold under the closing to subscribers introduced by the broker. The broker warrants have identical terms to the standard warrants. All securities issued in connection with the closing are subject to a statutory hold period in accordance with applicable securities legislation ending on April 23, 2023.

The proceeds from the issuance of the flow-through units will be used to incur eligible Canadian exploration expenses and Canadian development expenses, as both terms are defined in the act, that qualify as flow-through mining expenditures related to the company’s Record Ridge magnesium deposit and Midnight gold claim. The proceeds from the issuance of the standard units will be used for general working capital purposes and expenses.

About West High Yield (W.H.Y.) Resources Ltd.

West High Yield is a publicly traded junior mining exploration and development company focused on the acquisition, exploration and development of mineral resource properties in Canada with a primary objective to develop its Record Ridge magnesium, silica and nickel deposit using green processing techniques to minimize waste and CO2 (carbon dioxide) emissions.

The company’s Record Ridge magnesium deposit located 10 kilometres southwest of Rossland, B.C., has approximately 10.6 million tonnes of contained magnesium based on an independently produced preliminary economic assessment technical report prepared by SRK Consulting (Canada) Inc. in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.

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