West High Yield Announces Closing of Private Placement with the MineralFields Group, Release of First Quarter Results and Operations Update
June 30, 2011
CALGARY, ALBERTA--(Marketwire - June 30, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS
West High Yield (W.H.Y.) Resources Ltd. (TSX VENTURE:WHY) ("West High Yield" or the "Company") is pleased to announce that it has closed the previously announced non-brokered private placement of 2,500,000 units (the "Units") at a price of $0.40 per Unit each to the MineralFields Group for aggregate proceeds of $1,000,000 (the "Offering").
"We are very pleased to be entering into this relationship with MineralFields Group", said Frank Marasco, Jr., President and Chief Executive Officer. "This is an important milestone in the growth of West High Yield and we look forward to working with MineralFields Group as we further develop our Record Ridge South property near Rossland, British Columbia."
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®, and have raised over $1 billion in their 10 year history.
The Company also announces the release of its financial report and the Management Discussion and Analysis ("MD&A") for the three months ended March 31, 2011. The financial report and related MD&A for the three months ended March 31, 2011 have been filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com. The Company advises shareholders and investors that the consolidated financial report and MD&A are now being presented in accordance with the new International Financial Reporting Standards ("IFRS"), with a restatement of comparative results achieved in Q1 2010. This change to IFRS does not affect the Company's operations and will be the basis for all future financial reporting of the Company.
The Company also advises that it plans to continue its core drilling program on its substantial magnesium resource at its Record Ridge South property near Rossland, B.C., in order to delineate and expand the exploration grid on the property and collect additional geotechnical data. The Company has obtained a NI 43-101 Reserve Report prepared by SRK Consulting("SRK") of Denver, Colorado which indicates 9,160,000 gross tonnes of magnesium (7,145,000 tonnes recoverable) based upon core results obtained in previous drilling programs on the property. The Company plans to drill up to 30 additional drill cores in its 2011 Summer program and will conduct metallurgical testing of the cores in order to allow SRK to complete a scoping level economic evaluation ("PEA") of the Company's resource.
This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with mining exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers and producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
45,320,394 Common Shares Issued.
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.
West High Yield (W.H.Y.) Resources Ltd.
President and Chief Executive Officer
(403) 206-7159 (FAX)
West High Yield (W.H.Y.) Resources Ltd.
Chief Financial Officer
(403) 206-7159 (FAX)