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West High Yield (W.H.Y.) Resources Ltd. Announces Second Tranche Closing of Private Placement and Debt for Shares Transaction

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West High Yield (W.H.Y.) Resources (TSXV: WHY) has announced the closing of a second tranche of its private placement offering, issuing 1,125,000 Units at CAD$0.20 per Unit for gross proceeds of CAD$225,000. Each Unit consists of one Common Share and one Warrant, with the Warrant allowing the purchase of an additional Common Share at CAD$0.30 within 12 months.

The company has also entered into debt settlement agreements with four creditors to convert CAD$320,000 of outstanding consulting fees into Common Shares at a deemed price of CAD$0.20 per share. The proceeds from the offering will be used for permitting processes, essential operations, working capital, and a planned drilling program for water monitoring holes at the Record Ridge magnesium deposit.

West High Yield (W.H.Y.) Resources (TSXV: WHY) ha annunciato la chiusura di una seconda tranche della sua offerta di private placement, emettendo 1.125.000 Unità a CAD$0,20 per Unità per un incasso lordo di CAD$225.000. Ogni Unità è composta da una Fattura Ordinaria e un Warrant, con il Warrant che consente l'acquisto di un'ulteriore Fattura Ordinaria a CAD$0,30 entro 12 mesi.

L'azienda ha anche stipulato accordi di risoluzione del debito con quattro creditori per convertire CAD$320.000 di compensi per consulenze non pagati in Fatture Ordinarie a un prezzo stimato di CAD$0,20 per azione. I proventi dell'offerta saranno utilizzati per processi di autorizzazione, operazioni essenziali, capitale circolante e un programma di perforazione pianificato per i pozzi di monitoraggio dell'acqua presso il deposito di magnesio di Record Ridge.

West High Yield (W.H.Y.) Resources (TSXV: WHY) ha anunciado el cierre de una segunda tranche de su oferta de colocación privada, emitiendo 1,125,000 Unidades a CAD$0.20 por Unidad con un ingreso bruto de CAD$225,000. Cada Unidad consiste en una Acción Común y una Opción, siendo la Opción que permite la compra de una Acción Común adicional a CAD$0.30 dentro de un periodo de 12 meses.

La compañía también ha firmado acuerdos de liquidación de deuda con cuatro acreedores para convertir CAD$320,000 de tarifas de consultoría pendientes en Acciones Comunes a un precio estimado de CAD$0.20 por acción. Los ingresos de la oferta se usarán para procesos de permisos, operaciones esenciales, capital de trabajo y un programa de perforación planificado para la monitorización de pozos de agua en el depósito de magnesio de Record Ridge.

West High Yield (W.H.Y.) Resources (TSXV: WHY)는 두 번째 트랜치 종료를 발표하며, 1,125,000 유닛CAD$0.20 유닛당 발행하여 총 CAD$225,000의 수익을 올렸습니다. 각 유닛은 하나의 보통주와 하나의 워런트로 구성되어 있으며, 워런트는 12개월 이내에 CAD$0.30에 추가 보통주를 구매할 수 있도록 합니다.

회사는 또한 네 명의 채권자와 채무 정산 계약을 체결하여 CAD$320,000의 미지급 컨설팅 수수료를 CAD$0.20 주당의 가격으로 보통주로 전환합니다. 이번 공모의 수익은 허가 절차, 필수 운영, 운전 자본 및 Record Ridge 마그네슘 광산에서의 수자원 모니터링 구멍을 위한 계획된 시추 프로그램에 사용될 것입니다.

West High Yield (W.H.Y.) Resources (TSXV: WHY) a annoncé la clôture d'une seconde tranche de son placement privé, émettant 1.125.000 unités à CAD$0.20 par unité pour des produits bruts de CAD$225.000. Chaque unité se compose d'une Action Ordinaire et d'un Bon de Souscription, le Bon de Souscription permettant l'achat d'une Action Ordinaire supplémentaire à CAD$0.30 dans un délai de 12 mois.

La société a également conclu des accords de règlement de dette avec quatre créanciers pour convertir CAD$320.000 d'honoraires de conseil impayés en Actions Ordinaires à un prix estimé de CAD$0.20 par action. Les recettes de l'offre seront utilisées pour les processus d'autorisation, les opérations essentielles, le fonds de roulement et un programme de forage prévu pour la surveillance des points d'eau au gisement de magnésium de Record Ridge.

West High Yield (W.H.Y.) Resources (TSXV: WHY) hat den Abschluss einer zweiten Tranche seiner Privatplatzierungsanleihe bekanntgegeben und 1.125.000 Einheiten zu CAD$0,20 pro Einheit mit einem Bruttoertrag von CAD$225.000 ausgegeben. Jede Einheit besteht aus einer Stammaktie und einem Optionsschein, wobei der Optionsschein den Kauf einer zusätzlichen Stammaktie zu CAD$0,30 innerhalb von 12 Monaten erlaubt.

Das Unternehmen hat außerdem Schuldenausgleichsvereinbarungen mit vier Gläubigern abgeschlossen, um CAD$320.000 an ausstehenden Beratungsgebühren zum festgelegten Preis von CAD$0,20 pro Aktie in Stammaktien umzuwandeln. Die Erträge der Angebotsplatzierung werden für Genehmigungsprozesse, essentielle Operationen, Betriebskapital und ein geplantes Bohrprogramm zur Überwachung von Wasserbohrlöchern im Record Ridge Magnesiumvorkommen verwendet.

Positive
  • Raised CAD$225,000 through private placement offering
  • Converted CAD$320,000 of debt into equity, preserving cash for future operations
  • Funds to be used for permitting process and planned drilling program
Negative
  • Issuance of new shares may lead to dilution for existing shareholders

Calgary, Alberta--(Newsfile Corp. - October 9, 2024) - West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) ("West High Yield" or the "Company") announces that, further to its news releases of August 29, 2024 and September 26, 2024, it has closed a second tranche (the "Closing") of its previously announced private placement offering (the "Offering") of units (the "Units"). The Company is announces that it has it has entered into debt settlement agreements (the "Debt Settlement Agreements") with four (4) lenders of the Company (the "Creditors") to settle outstanding debts owed to them.

Offering

The Closing consisted of the issuance 1,125,000 Units for gross proceeds of CAD$225,000. The Units were issued at a price of CAD$0.20 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$0.30, entitles the holder thereof to acquire one (1) additional Common Share for twelve (12) 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 to conclude the Company's permitting process, covering essential operations, general working capital purposes and expenses, and 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, Mines and Low Carbon Innovation.

Debt Settlement Agreements

The Company has agreed to convert an aggregate of CAD$320,000 in debt (the "Debt") into Common Shares (the "Settlement Shares"), such Debt evidencing outstanding consulting fees due and owing from the Company to the Creditors (the "Shares for Debt Transaction"). 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 Agreements, the Company has agreed to issue Settlement Shares to the Creditors at a deemed issuance price of CAD$0.20 per Settlement Share in full and final satisfaction of the Debt. No new "control person" of the Company will be created pursuant to the Shares for Debt Transaction, and no new "insiders" of the Company will be created by virtue of holding over 10% of the Company's issued and outstanding common shares upon completion of the Shares for Debt Transaction.

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 Creditors is subject to the approval of the TSX Venture Exchange.

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/226209

FAQ

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

West High Yield Resources raised CAD$225,000 in gross proceeds from the second tranche of its private placement offering.

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 CAD$0.20 per Unit.

How much debt is West High Yield Resources (WHYRF) converting into shares?

West High Yield Resources is converting CAD$320,000 of outstanding debt into Common Shares.

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

The proceeds will be used for the company's permitting process, essential operations, working capital, and a planned drilling program for water monitoring holes at its Record Ridge magnesium deposit.

WEST HIGH YIELD RES LTD

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