West High Yield arranges unit offering for $2.5-million
2021-12-16 17:56 ET – News Release
Mr. Frank Marasco Jr. reports
WEST HIGH YIELD (WHY) RESOURCES LTD. ANNOUNCES FLOW-THROUGH PRIVATE PLACEMENT OFFERING
West High Yield (WHY) Resources Ltd. has arranged a brokered private placement offering for aggregate gross proceeds of up to $2.5-million. GloRes Securities Inc. will act as agent for the offering.
The offering shall consist of the issuance of up to 2,976,190 units of the company at a price of 84 cents per unit. Each unit shall be composed of: (i) one common share of the company issued on a flow-through basis under the Income Tax Act (Canada) for Canadian exploration expenses (CEE) as defined in the act; and (ii) one-half of a common share purchase warrant. One full warrant, together with $1.25, will entitle the holder thereof to acquire one additional common share of the company for a period of 18 months from the date of issuance. The warrants will not be listed on the TSX Venture Exchange (TSX-V).
For its role as broker under the offering, the agent will receive: (i) a cash commission equal to 6.0 per cent of the proceeds of the offering raised from investors introduced to the company by the agent; and (ii) broker warrants equal to 6.0 per cent of the number of units sold under the offering to investors introduced to the company by the agent. The broker warrants will be issued to and exercisable by the agent on the same terms and conditions as the warrants.
The offering is 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 offering are subject to the statutory hold period that expires four months and one day from their issuance.
Use of proceeds from the offering
The proceeds from the offering will be used by the company to support its gold drilling program for 2022 on its Midnight property which has already been permitted, allocated as per regulatory guidelines. The company plans to drill holes to a depth of at least 600 metres per hole at its Midnight property.
The company, using analysis from its 2009 26-hole gold drill program, noted that except for two holes (MN09-19 and MN09-26) from the 2009 drill program, all holes intersected a series of quartz veins and gold-bearing serpentinites with significant gold values. Most notably from the 2009 drill program were: (i) hole MN09-15, which returned weighted average of 40.1 grams per tonne over a true width of 2.3 m including 198 g/t Au for a true width of 0.8 m near surface (13.9 m in drill depth); and (ii) hole MN09-24, which returned a weighted average of 25.16 g/t over a true width of 3.6 m including 73.23 g/t Au for a true width of 1.2 m. For more detailed information, please refer to the company’s Sept. 24, 2020, news release or its website.
Based on the results from the 2009 drill program, the company plans to further define the gold mineralization on its Midnight property in order to allow the company to proceed with a mineral resource estimate pursuant to National Instrument 43-101 — Standards of Disclosure for Mineral Projects.
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 deposit using green processing techniques to minimize waste and CO2 emissions.
We seek Safe Harbor.
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