West High Yield closes $500,000 financing, borrows $1M

Apr 27, 2016

WEST HIGH YIELD ANNOUNCES COMPLETION OF PRIVATE PLACEMENT AND LOAN AGREEMENT

West High Yield (WHY) Resources Ltd. has completed its previously announced non-brokered private placement of common shares. The company issued 1,515,151 common shares at a price of 33 cents per common share for gross proceeds of $500,000. All of the common shares issued under the private placement are subject to a four-month resale restriction. The private placement is subject to receipt of all necessary regulatory approvals including final approval of the TSX Venture Exchange.

The company is also pleased to announce that it has entered into an unsecured loan agreement with a private company pursuant to which the lender has provided the company with a loan in the principal amount of $1-million. Subject to the detailed terms of the loan agreement (including, without limitation, provisions governing prepayment rights and early payment obligations in certain circumstances), the loan shall mature 10 years from the disbursement date of the loan and shall bear interest at the rate of 11.61 per cent per annum, calculated and compounded annually in arrears.

The net proceeds of the private placement and the principal amount of the loan shall be used for general corporate purposes, environmental study and mine plan development as required by the environmental assessment certification and mine permit application processes, and for the extraction and processing of 10,000-tonne bulk samples of magnesium and gold on the company’s Record Ridge South property as approved by the British Columbia Ministry of Energy and Mines. The company expects these operations to occur in the summer of 2016, subject to securing additional financing.

The company also announces the release of its audited financial statements and management’s discussion and analysis for the year ended Dec. 31, 2015. The audited financial statements and related MD&A for the year ended Dec. 31, 2015, have been filed with Canadian securities regulatory authorities under the company’s profile on SEDAR.

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