Business
West High Yield (W.H.Y.) Resources Ltd. Signs Forward Contract LOI to Sell Magnesium Ore from Record Ridge Deposit
Calgary, Alberta--(Newsfile Corp. - December 7, 2021) - West High Yield (W.H.Y.) Resources Ltd...
About this update from West High Yield (w.h.y.) Resources Ltd.
[{"type":"text","content":"West High Yield (W.H.Y.) Resources Ltd. Signs Forward Contract LOI to Sell Magnesium Ore from Record Ridge DepositCalgary, Alberta--(Newsfile Corp. - December 7, 2021) - West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (\"West High Yield\" or the \"Company\") is pleased to announce that it has signed a letter of intent (the \"LOI\") with APG Galaxy Trade and Technology, LLC, a U.S.-based company focused on the acquisition and production of magnesium and other precious metals (\"Galaxy\"), for the purchase and sale of magnesium serpentine ore (the \"Ore\") produced by West High Yield at its Record Ridge magnesium deposit (the \"Deposit\") located near Rossland, British Columbia, Canada (the \"Transaction\").The LOI is non-binding as the parties work towards the signing of a binding definitive agreement (the \"Definitive Agreement\") in respect of the Transaction. The LOI contemplates Galaxy purchasing a minimum of 200,000 metric tonnes (\"Mts\") of the Ore per annum during the term of the Definitive Agreement. The purchase price will be USD$500 per Mt of the Ore during the first three (3) year period of the Definitive Agreement, and shall be subject to adjustment for the remaining term of the Definitive Agreement based on factors including but not limited to production costs and the Consumer Price Index of Canada. The Transaction is subject to, among other items, standard conditions precedent in favour of each of Galaxy and the Company, individually, including the receipt by the Company of all necessary government and regulatory approvals and permits to extract the Ore from the Deposit. The Company has agreed to an exclusivity period with Galaxy for the sale of the minimum quantity of the Ore until all of its conditions have been waived or satisfied in full, during which it will negotiate exclusively with Galaxy with a view to settling the Definitive Agreement. The Company will issue a news release updating this information and providing more detail on the parties and finalized terms once the Definitive Agreement has been entered into.Frank Marasco Jr., President and CEO of West High Yield states: \"The Company has been looking for interested and capable partners to purchase the initial mined inventory of our critical mineral rich ore and generate positive cash flow for the Company. We appreciate Galaxy's magnesium experience ...