West High Yield closes $2.49-million private placement
2021-12-30 17:48 ET – News Release
Mr. Frank Marasco reports
WEST HIGH YIELD (W.H.Y.) RESOURCES LTD. ANNOUNCES CLOSING OF FLOW-THROUGH PRIVATE PLACEMENT OFFERING
West High Yield (WHY) Resources Ltd. has closed its previously announced brokered private placement offering for aggregate gross proceeds of up to $2,499,951.72.
The Offering consisted of the issuance of 2,976,133 units (the “Units”) of the Company at a price of CAD$0.84 per Unit. Each Unit was comprised of: (i) one (1) common share of the Company (each, a “Common Share”) issued on a “flow-through basis” under the Income Tax Act (Canada) (the “Act”) for Canadian Exploration Expense (CEE) as defined in the Act; and (ii) one-half (1/2) of a Common Share purchase warrant (each, a “Warrant”). One (1) full Warrant, together with CAD$1.25, entitles each holder thereof to acquire one (1) additional Common Share of the Company for a period of eighteen (18) months from the closing date. The Warrants will not be listed on the TSX Venture Exchange (the “TSXV”).
For its role as broker under the Offering, GloRes Securities Inc. (the “Agent”) received: (i) a cash commission of $149,997.00, equal to 6.0% of the proceeds of the Offering raised from investors introduced to the Company by the Agent); and (ii) 178,567 broker warrants (the “Broker Warrants”), equal to 6.0% of the number of Units sold under the Offering to investors introduced to the Company by the Agent. The Broker Warrants were issued to and are exercisable by the Agent on the same terms and conditions as the Warrants.
The closing of the Offering is subject to certain closing conditions including but not limited to final acceptance and approval from the TSXV. 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
As previously announced in its press release dates December 16, 2021, 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 meters per hole at its Midnight property.
The Company, using analysis from its 2009 26-hole gold drill program (the “2009 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 g/tonne over a true width of 2.3 m including 198 g/tonne 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/tonne over a true width of 3.6 m including 73.23 g/tonne Au for a true width of 1.2 m. For more detailed information, please refer to the Company’s September 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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