West High Yield (W.H.Y.) Resources Ltd. Announces First Tranche Closing of Private Placement

Rhea-AI Summary

West High Yield (W.H.Y.) Resources (TSXV: WHY) has closed the first tranche of its previously announced private placement offering on August 9, 2024. The closing consisted of 435,076 Units issued at $0.33 per Unit, raising gross proceeds of $143,575.05. Each Unit comprises one Common Share and one Warrant, with each Warrant allowing the holder to acquire an additional Common Share at $0.45 within 18 months of the closing date.

The proceeds will be used to support the Company's planned drilling program for water monitoring holes at its Record Ridge magnesium deposit, complete the permitting process, cover essential operations, and for general working capital purposes. All securities issued are subject to a four-month plus one day trading hold period.

Positive

• Successful closing of first tranche of private placement, raising $143,575.05
• Funds to support planned drilling program and permitting process for Record Ridge magnesium deposit
• Warrants provide potential for additional capital influx at $0.45 per share within 18 months

Negative

• Dilution of existing shareholders' ownership due to issuance of new shares
• Relatively small amount raised may not be sufficient for long-term operational needs

Calgary, Alberta--(Newsfile Corp. - August 9, 2024) - West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) ("West High Yield" or the "Company") announces that, further to its news release of July 9, 2024, it has closed the first tranche (the "Closing") of its previously announced private placement offering (the "Offering") of units (the "Units") on August 9, 2024.

The Closing consisted of the issuance 435,076 Units for gross proceeds of $143,575.05. The Units were issued at a price of $0.33 per Unit, and each Unit consists of one (1) Common share of the Company (each, a "Common Share") and one (1) Common Share purchase warrant (each, a "Warrant"). Each Warrant, together with CAD$0.45, entitles the holder thereof to acquire one (1) additional Common Share for eighteen (18) months from the date of the Closing. All securities comprising the Units issued on the Closing will be subject to a trading hold period expiring four months plus one day from the date of issuance.

The proceeds from the Closing will be used: for supporting the Company's planned drilling program for the water monitoring holes at its Record Ridge magnesium deposit, as required by the British Columbia Ministry of Energy, Mining, and Low Carbon Innovation; concluding its permitting process; covering essential operations; and general working capital purposes and expenses.

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, silica, and nickel deposit using green processing techniques to minimize waste and CO₂ emissions.

The Company's Record Ridge magnesium deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium based on an independently produced National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") Preliminary Economic Assessment technical report prepared by SRK Consulting (Canada) Inc. in accordance with NI 43-101.

Contact Information:

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD.

Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488
Email: frank@whyresources.com

Barry Baim, Corporate Secretary
Telephone: (403) 829-2246
Email: barry@whyresources.com

Cautionary Note Regarding Forward-looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219436

FAQ

How much did West High Yield Resources (WHYRF) raise in the first tranche of its private placement?

West High Yield Resources raised gross proceeds of $143,575.05 in the first tranche of its private placement, which closed on August 9, 2024.

What is the price per Unit in West High Yield Resources' (WHYRF) private placement?

The Units in West High Yield Resources' private placement were issued at a price of $0.33 per Unit.

What will West High Yield Resources (WHYRF) use the proceeds from the private placement for?

The proceeds will be used for the planned drilling program for water monitoring holes at the Record Ridge magnesium deposit, completing the permitting process, covering essential operations, and general working capital purposes.

What are the terms of the Warrants issued in West High Yield Resources' (WHYRF) private placement?

Each Warrant, along with CAD$0.45, allows the holder to acquire one additional Common Share within 18 months from the closing date of August 9, 2024.