West High Yield arranges $1.25M in concurrent offerings

Dec 14, 2022

2022-12-13 19:09 ET – News Release

Mr. Frank Marasco Jr. reports

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD. ANNOUNCES FLOW-THROUGH AND STANDARD PRIVATE PLACEMENT OFFERINGS

West High Yield (W.H.Y.) Resources Ltd. has arranged two concurrent private placement offerings to raise aggregate gross proceeds of up to $1.25-million. GloRes Securities Inc. (the agent) will act as agent for the offerings.

The first of the two offerings shall consist of the sale of up to 1.5 million units (the flow-through units) of the company at a price of 50 cents per flow-through unit for gross proceeds of up to $750,000. Each flow-through unit shall consist of: (i) one common share of the corporation issued on a flow-through basis under the Income Tax Act (Canada) for Canadian exploration expense (CEE) and Canadian development expenses (CDE), as those terms are defined in the act; and (ii) one-half of one common share purchase warrant. Each flow-through warrant, together with 70 cents, will entitle the holder thereof to acquire one additional common share for a period of 18 months from the date of issuance. The flow-through warrants will not be listed on the TSX Venture Exchange.

The second of the two offerings shall consist of the sale of up to 1,190,476 units of the company at a price of 42 cents per standard unit for gross proceeds of up to $500,000. Each standard unit shall consist of one common share and one common share purchase warrant. Each standard warrant, together with 70 cents, will entitle the holder thereof to acquire one additional common share for a period of 24 months from the date of issuance. The standard warrants will not be listed on the TSX-V.

For its role as agent under the offerings, the agent will receive: (i) a cash commission equal to 6 per cent of the aggregate gross proceeds raised by the company under the offerings from investors that were introduced to the company by the agent; and (ii) broker warrants equal to 6 per cent of the sum of regular units and flow-through units issued pursuant to the offerings to investors that were introduced to the company by the agent. One full broker warrant, together with 70 cents, will entitle the agent to acquire one additional common share of the company for a period of 24 months from the date of issuance. The broker warrants will not be listed on the TSX-V.

The proceeds from the issuance of the standard units will be used for general working capital purposes and expenses. The proceeds from the issuance of the flow-through units will be used by the company to incur eligible CEE and CDE that will qualify as flow-through mining expenditures (as such terms are defined in act) in respect of the company’s Record Ridge magnesium deposit and Midnight gold claim.

The offerings are subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance and approval of the TSX-V. All securities issued pursuant to the offerings are subject to the statutory hold period that expires four months and one day from their issuance.

About West High Yield (WHY) 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 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 in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.

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