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West High Yield (W.H.Y) Resources Ltd V.WHY

Alternate Symbol(s):  WHYRF

West High Yield (WHY) Resources Ltd is a Canada-based junior mining exploration and development company. The Company is focused on acquiring, exploring, and developing mineral resource properties in Canada. Its primary objective is to develop its Record Ridge critical mineral (magnesium, silica, and nickel) deposit using green processing techniques to minimize waste and CO2 emissions. The Company’s Record Ridge critical mineral deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium. The Company retains 100% of the mineral rights to the Record Ridge Property, which consists of 29 contiguous mineral claims, eight crown-granted claims, and one privately owned claim totaling 8,972 hectares. The known magnesium mineralization is located within two of the mineral claims. The infrastructure for the proposed development of the Record Ridge Property is located on mineral tenures controlled by the Company.


TSXV:WHY - Post by User

Post by dmacdon Apr 29, 2021 3:35pm
384 Views
Post# 33095162

Recent Financing Funds the Mine Permit

Recent Financing Funds the Mine Permit CEO puts another non-dilutive capital infusion into the company and closed on some fresh capital. I suspect there will be more to follow in the coming months since the goal was to raise at least $2.5M. 

Regulatory approval plus a mine engineering study will convert resource to booked reserves with 100+ year mine life, and sets the mining, shipping and environmental monitoring plans. Lots to do in the next 6 to 8 months with offtake agreements, operational contracts for mining, infrastructure and environmental monitoring and shipping arrangements. My guess is there will be a seasonal operation with contracted labour unless the mine expands and becomes year round. Hence this is not a complex implementation and labour is easy with the Rossland location. 

My guess is the NAV will be north of $100M once the ore is converted to reserves, and based on that bank fiancing for $5M or so to get up and running will be one of the easiest  non-dilutive financings to arrange. My guess is the Big Mountain loans will be paid off at that time. 

Hence, we are trading at 10% of my conservative estimate of a year end NAV estimate which ignores for simplicity the value of the gold assets and magnesium growth projects to quadruple mining capaity and add processing facilities which takes us to closer to $1.0 billion valuation.  

Yep ... patience will pay off well for those who have it. The simple reality is that WHY may not need to ever do a dilutive financing so these next few months is the chance for funds to get a significant stake before the SP starts to go into beast mode. 

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