West High Yield to settle $1.88M debt with shares

May 20, 2022

2022-05-20 12:26 ET – News Release

Mr. Frank Marasco reports

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD. ANNOUNCES PROPOSED SHARES FOR DEBT TRANSACTION AND PROCEEDS FROM EXERCISE OF OPTIONS

West High Yield (W.H.Y.) Resources Ltd. Ltd. has entered into a debt settlement agreement with an arm’s-length creditor of the company to settle an outstanding debt. The company also announces the receipt of proceeds from the exercise of certain securities of the company.

Debt Settlement Agreement

The Company has agreed to convert $1,883,822.00 in debt (the “Debt”) owed to the Creditor into common shares in the capital of the Company (the “Settlement Shares”) related to an outstanding loan extended to the Company by the Creditor. The Company is proposing to issue the Settlement Shares in order to preserve cash to fund future operations.

Pursuant to the terms of the Debt Settlement Agreement, the Company has agreed to issue 3,139,370 Settlement Shares to the Creditor at a deemed issuance price of $0.60 per Settlement Share in full and final satisfaction of the Debt. By issuing the Settlement Shares, the Debt will be definitively extinguished.

The Settlement Shares will be issued in reliance on certain prospectus exemptions available under Canadian securities legislation and will be subject to a four month and one day hold period from the date of issuance. The issuance of the Settlement Shares to the Creditor is subject to the approval of the TSX Venture Exchange

Proceeds from Exercise of Options

The Company further announces that a holder (the “Optionholder”) of options to purchase common shares of the Company (the “Options”) exercised an aggregate of 200,000 Options resulting in the issuance of 200,000 common shares of the Company (each, an “Option Share”). The Options were exercisable at a price of CAD$0.12 per Option Share. The Options exercised by the Optionholder were issued to the Optionholder, among others, as part of an option grant of the Company on September 4, 2020.

About West High Yield

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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