West High Yield Resources (WHY.V), a Canadian junior miner focused on the exploration and development of mineral properties in British Columbia, announced on December 23, 2022, that it had successfully closed the first tranche of its previously announced oversubscribed financing.
The private placement announced December 13, 2022, was a combination of flow-through units and ordinary units. Flow-through units were issued at $0.50 per unit and ordinary units were offered at $0.42 per unit.
Each flow-through unit consisted of one common share in the company issued on a flow-through basis under the Income Tax Act (Canada), and one-half of one common share purchase warrant. Each flow-through warrant entitles the holder to purchase one common share in the company at an exercise price of $0.70 until December 23, 2024.
The first tranche totaled 1.57 million flow-through units for gross proceeds of $785,000 and 399,000 ordinary units for gross proceeds of $167,580, culminating in total aggregate gross proceeds of $952,580.
Proceeds from the issued flow-through units will be used to incur eligible Canadian exploration expenses and Canadian development expenses at both the company’s Record Ridge magnesium project and Midnight gold claim. Proceeds from the standard units will be used for general working capital purposes and expenses.
West High Yield Resources announced recently that it had struck more vein-hosted visible gold with high-grade assays from Midnight gold claim.
The completed 2022 drill program consisted of 41 holes and 6,197 metres total depth. W.H.Y. Resources tested targets in the historical Midnight, IXL and OK mining areas.
Highlights included 154 g/t Au at 72.35 – 72.65 metres in MN22-13 and 21.4 g/t Au at 185.7 – 186.2 metres also in MN22-13.
At the beginning of December, W.H.Y. Resources announced it had completed the pre-feasibility study for a magnesium oxide production plant at its Record Ridge magnesium project.
The study revealed a post-tax net present value (NPV) of $871.8 million CAD at a 5% discount and a post-tax internal rate of return (IRR) of 72.03%.
The production facility is expected to produce an average annual 86,500 of 98% purity MgO product at capacity with a project life of 20 years.
Initial capital expenditures for the facility including mine pre-production, processing, and infrastructure such as access roads and site preparation, totals $205.4 million.
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West High Yield Resources currently trades for $0.43 per share for a market cap of $35.25 million.
