CALGARY, ALBERTA, – August 28, 2007. West High Yield (W.H.Y.) Resources Ltd. (“West High Yield” or the “Company”) is pleased to announce release of its financial (unaudited) results for the second quarter ended June 30, 2007 and the Management’s Discussion and Analysis (“MD&A”) dated August 27, 2007.
- Phase 3 of the Company’s 2007 core drilling program began on May 5, 2007. To date, in excess of 9,550 feet of core has been drilled on the Company’s property near Rossland B.C.
- Completion of a private placement financing of 4,500,000 Units of the Corporation for gross proceeds of $2,925,000. Each Unit consisted of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one share of the Company at a price of $1.00 for a period of who years.
- At June 30, 2007, there were 734,000 warrants exercised that were issued under the Company’s I.P.O. for gross proceeds of $440,400. Subsequent to quarter end and prior to the warrant expiry, there were an additional 282,050 warrants exercised for additional gross proceeds of $169,230.
- At June 30, 2007, there were 275,500 Agent’s Units exercised that were issued under the Company’s
I.P.O. for gross proceeds of $110,200. Subsequent to quarter end there were an additional 309,100 Agent’s Units exercised for gross proceeds of $123,640.
- On May 29, 2007, Ian F.T. Kennedy was appointed a Director of the Corporation. Concurrent with the appointment, options to acquire 200,000 shares of the Company at a price of $0.60 were granted to Mr. Kennedy. The options have a term of five years and vest one-third on the date of grant and one-third each on each of the next two anniversaries of the date of grant.
During the quarter ended June 30, 2007, the Company recorded a net loss of $759,583 or $0.02 per share (year to date $1,066,248 or $0.03 per share) compared to a net loss in the corresponding period of 2006 of $373,124 or $0.02 per share (year to date $760,800 or $0.03 per share).
At June 30, 2007, the Company had a working capital surplus of $3,846,016 compared to a working capital deficiency of $1,964,459 at June 30, 2006 and a working capital surplus of $1,657,594 at December 31, 2006. The current working capital surplus position, will allow the Company to conduct planned field operations through the remainder of the 2007 field season as well as the 2008 exploration season.
Total income for the three month period ended June 30, 2007 amounted to $29,314 ($45,335 year to date) compared to $1,003 in the quarter ended June 30, 2006 ($2,878 year to date) while total expenses for the equivalent periods amounted to $788,897 ($1,111,583 year to date) in 2007 and $374,127 ($763,678 year to date) in 2006 respectively. Total non-cash expenditures in the quarter ended June 30, 2007 were $71,786 ($203,424 year to date) compared to $121,317 ($442,791 year to date) for the period ended June 30, 2006.
West High Yield (W.H.Y.) Resources is a junior mining exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada.
For further information please contact:
President and Chief Executive Officer West High Yield (W.H.Y.) Resources Ltd. 28 Arbour Lake Drive N.W.,
Calgary, Alberta T3G 3N8 Telephone: (403) 660-3488
Facsimile: (403) 206-7159
Email: [email protected]
Craig G. Robson
Vice President, Corporate Development and Investor Relations
West High Yield (W.H.Y.) Resources Ltd. Suite 620, 800 West Pender Street Vancouver, B.C. V6C 2V6
Telephone: (604) 868-7961
Facsimile: (604) 274-1431
The TSXV has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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.
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