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Anaconda Mining Announces Third Quarter 2021 Financial Results

TORONTO, ON / ACCESSWIRE / November 4, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to report its financial…

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TORONTO, ON / ACCESSWIRE / November 4, 2021 / Anaconda Mining Inc. (“Anaconda” or the “Company”) (TSX:ANX)(OTCQX:ANXGF) is pleased to report its financial and operating results for the three months ended September 30, 2021 (“Q3 2021”). The consolidated interim financial statements and management discussion and analysis documents can be found at www.sedar.com and the Company’s website, www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.

“With mining at Argyle focused on waste development and throughput largely limited to lower-grade Pine Cove ore stockpiles, Anaconda sold 2,574 ounces of gold, generating metal revenue of $5.8 million, with operating cash costs* of $2,087 (US$1,656) per ounce of gold sold. Challenges in mine development during the quarter delayed access to Argyle ore and as a result the Company revised its production guidance for 2021 to approximately 12,000 ounces of gold sold and produced and is also revising its operating cash cost* guidance upward to between $2,150 and $2,200 per ounce of gold sold (US$1,720 – US$1,760). We are confident with the changes we have made at Argyle over the second and third quarter, including an independently prepared updated Mineral Resource, and 2022 is shaping up to be a record year of production for the Company. Furthermore, with the growth of the Stog’er Tight Deposit, now including 62,300 ounces of Indicated Mineral Resource and 9,600 ounces of Inferred Mineral Resource within constrained open pit shells, and ongoing drill testing of additional targets at both the Point Rousse and Tilt Cove projects, we believe the Point Rouse Project has the potential for continued cash generation for several years.”

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Third Quarter 2021 Highlights

  • Anaconda sold 2,574 ounces of gold in Q3 2021, generating metal revenue of $5.8 million at an average realized gold price* of $2,242 (US$1,779) per ounce sold;
  • Due to slower mine waste development at Argyle during Q3 2021 which delayed access to higher-grade ore, the Company has revised its 2021 guidance downward to approximately 12,000 ounces of gold sold and produced;
  • Gold production from the updated Argyle Mineral Reserve (effective September 1, 2021) is expected to be approximately 29,500 ounces based on an 87% overall mill recovery, setting up Anaconda for a record year of production in 2022, at an average operating cash cost per ounce sold of $1,112 (US$878)*;
  • Operating cash costs per ounce sold* at Point Rousse in Q3 2021 were $2,087 (US$1,656), driven by lower production from lower milled grade from low-grade ore stockpiles coupled with higher operating costs. Operating cash costs per ounce sold* for the full year are now expected to be between $2,150 and $2,200 per ounce of gold sold (US$1,720 – US$1,760 based on an exchange rate of 0.80);
  • All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was $3,979 (US$3,158) for Q3 2021, which reflects increased mine waste development and sustaining capital to advance Stog’er Tight;
  • The Company invested $2.2 million to advance its growth programs in Q3 2021, including $1.4 million on the Goldboro Gold Project relating to the Feasibility Study and permitting to support the advancement of the significantly expanded Mineral Resource;
  • Net loss for the three months ended September 30, 2021 was $1.1 million, or $0.01 per share, compared to net income of $4.0 million or $0.03 per share, for the three months ended September 30, 2020, driven predominantly by lower production;
  • On October 19, 2021, the Company announced an expanded Mineral Resource for Stog’er Tight, including Indicated Mineral Resources of 642,000 tonnes at a grade of 3.02 g/t gold (62,300 ounces of gold) and Inferred Mineral Resources of 53,000 tonnes at a grade of 5.63 g/t gold (9,600 ounces of gold), increasing the potential for a mine life extension at Point Rousse;
  • As of September 30, 2021, the Company had a cash balance of $10.6 million and working capital* of $6.3 million and additional available liquidity of $3.0 million from and undrawn revolving line credit facility with the Royal Bank of Canada.

*Refer to Non-IFRS Measures section below for reconciliation.

Consolidated Results Summary

Financial Results
Three months ended
September 30, 2021
Three months ended
September 30, 2020
Nine months ended
September 30, 2021
Nine months ended
September 30, 2020
Revenue ($)
5,855,453 12,703,630 12,703,630 20,155,365 31,594,739
Cost of operations, including depletion and depreciation ($)
6,245,043 5,540,360 23,123,227 18,368,320
Mine operating (loss) income ($)
(389,590 ) 7,163,270 (2,967,862 ) 13,226,419
Net (loss) income ($)
(1,078,899 ) 3,982,777 (5,778,000 ) 7,436,040
Net (loss) income per share ($/share) – basic and diluted ($)
(0.01 ) 0.03 (0.03 ) 0.05
Cash generated from operating activities ($)
251,303 6,183,727 (1,030,618 ) 12,007,716
Capital investment in property, mill and equipment ($)
3,125,994 387,383 5,431,463 1,577,708
Capital investment in exploration and evaluation assets ($)
2,227,982 2,150,374 9,195,864 4,638,061
Average realized gold price per ounce*

US$1,779

US$1,866

US$1,812

US$1,672

Operating cash costs per ounce sold*

US$1,656

US$677

US$1,828

US$830

All-in sustaining cash costs per ounce sold*

US$3,158

US$947

US$2,799

US$1,121

September 30, 2021 December 31, 2020
Working capital (*)
6,340,306 13,938,471
Total assets ($)
89,145,317 81,396,971
Non-current liabilities ($)
7,644,639 7,529,640

*Refer to Non-IFRS Measures section for reconciliation

Third Quarter Operating Statistics

Operational Results
Three months ended
September 30, 2021
Three months ended
September 30, 2020
Nine months ended
September 30, 2021
Nine months ended
September 30, 2020
Ore mined (t)
18,047 187,185 106,762 401,573
Waste mined (t)
802,087 387,116 1,934,794 1,510,830
Strip ratio
44.4 2.1 18.1 3.8
Ore milled (t)
118,988 120,359 328,551 351,828
Grade (g/t Au)
0.67 1.59 0.88 1.42
Recovery (%)
86.2 88.5 85.9 87.5
Gold ounces produced
2,218 5,444 7,959 14,098
Gold ounces sold
2,574 5,105 8,849 13,948

2021 Guidance

Due to slower mine development at Argyle during Q3 2021 which delayed access to higher-grade ore, Anaconda revised its 2021 guidance downward to approximately 12,000 ounces of gold, from 16,000 and 17,000 ounces of gold in 2021. Operating cash costs per ounce for the full year are expected to be between $2,150 and $2,200 per ounce of gold sold (US$1,720 – US$1,760 at an approximate exchange rate of 0.80), up from $1,625 and $1,675 per ounce of gold sold, reflecting the impact of operating cash costs per ounce sold in the first nine months of 2021 and the expected grade profile from Argyle over the remainder of the year. The average operating costs per ounce sold over the remaining Mineral Reserves for Argyle is expected to be $1,112 per ounce (US$878) and all-in sustaining cash costs per ounce sold is expected to be $1,252 per ounce (US$989) based on a strip ratio of 5.3 waste tonnes to ore tonnes. Sustaining capital over the remaining Argyle mine life is estimated to be $2.1 million from September 30, 2021.

Third Quarter 2021 Review

Operational Overview

Anaconda produced 2,218 ounces of gold in Q3 2021, a 61% decrease compared to Q3 2020 as throughput was predominantly from low-grade ore stockpiles while mine waste development was the focus at Argyle. For the nine months ended September 30, 2021, the Company produced 7,959 ounces due to the heavy focus on mine waste development coupled with the processing of low-grade ore stockpiles.

Mine operations in the third quarter were focused on mine waste development at Argyle with 802,087 tonnes of waste moved during the quarter. However, the rate of waste development was impacted by drill availability delaying the access to ore in Q3 2021, resulting in a strip ratio of 44.4 waste tonnes to ore tonnes. Ore mining has been ramping up significantly since the end of September and mill throughput in Q4 is expected to be predominantly from Argyle.

The Pine Cove Mill processed 118,988 tonnes during Q3 2021 and achieved an availability rate of 95.1%, resulting in a throughput rate of 1,361 tonnes per day, similar to the corresponding period of 2020, with overall gold production impacted by the processing of low-grade Pine Cove ore stockpiles. Notwithstanding the low-grade throughput, the mill was able to achieve an average recovery rate of 86.2%, a decrease of only 2.6% compared to Q3 2020 despite grade being down 58% from the prior period.

Financial Results

Anaconda sold 2,574 ounces of gold during the third quarter of 2021, generating gold revenue of $5.8 million at an average realized gold price of C$2,242 per ounce (US$1,779).

Operating expenses for the three months ended September 30, 2021 were $5,402,512 compared to $4,616,353 in the comparative period of 2020. Operating expenses for Q3 2021 included mining costs of $1,918,128 which were 21% lower than the comparative period, primarily due to significantly lower tonnes mined as well as the impact of the capitalization of $2,553,947 in deferred stripping costs at Argyle. Argyle has higher blasting and haulage unit costs and a higher strip ratio in comparison to Pine Cove, which was being mined in the previous year. Processing costs of $2,539,275 in Q3 2021 were higher than the comparative period primarily due to higher maintenance costs. Operating cash costs per ounce sold in the three months ended September 30, 2021 were C$2,087 (US$1,656), which were impacted by lower mine grade and higher processing costs.

The royalty expense for Q3 2021 was $53,434, reflecting the 3% net smelter return royalty that applies to Argyle. There were no royalty expenses in Q3 2020, as the Company was processing Pine Cove ore which was not subject to a net smelter return royalty. Depletion and depreciation for Q3 2021 was $789,097 a decrease from $924,007 in Q3 2020 reflecting the 59% decrease in gold ounces produced, offset by the ongoing capitalization of Argyle development since Q3 2020.

Mine operating loss for the three months ended September 30, 2021 was $389,590, compared to mine operating income of $7,163,270 in the corresponding period of 2020, the result of lower revenue and higher comparable operating costs during Q3 2021.

Corporate administration costs were $905,089 for Q3 2021, a decrease of 10% from Q3 2020.

In July 2021, Novamera completed an equity financing in which the Company did not participate, diluting its interests in Novamera to 19%. Consequently, the Company ceased to account for its investment on a significant control basis and at that time recorded a gain of $1,020,432 based on the implied valuation of the financing, which represents the excess of the fair value of the investment on that date as compared to the investment’s carrying value under the equity method.

Net comprehensive loss for the three months ended September 30, 2021, was $1,078,899, or $0.01 per share, compared to net comprehensive income of $3,982,777, or $0.03 per share, for the three months ended September 30, 2020. The decline compared to the comparative period of 2020 was the result of lower production and higher operating costs, which was partially offset by the gain on the loss of significant influence over Novamera and by a lower net income tax expense, as the Company did not record any current income tax expense in the recent period while also recording a deferred income tax expense of $617,000 during Q3 2021.

Financial Position and Cash Flow Analysis

As of September 30, 2021, the Company had working capital of $6,340,306, which included cash and cash equivalents of $10,567,042. The increase in trade and other payables reflects the higher operating costs incurred in Q3 2021 and was also impacted by the timing of exploration activities at Goldboro and Point Rousse. Current taxes payable reflects the Newfoundland mining taxes payable for year ended December 31, 2020, which was paid in the first half of 2021. The increase in other current liabilities is a result of the flow-through premium recorded during Q2 2021 in relation to the flow-through private placement completed in May 2021, representing the difference between the market price of the Company’s shares upon closing and the cash consideration received in exchange for the flow-through common shares, less the proportion of the transaction costs associated with the flow-through portion of the private placement.

Anaconda generated $251,303 in operating cash flows during the three months ended September 30, 2021, which included corporate administration costs of $905,089. The Point Rousse Project generated EBITDA of $388,185 (refer to Non-IFRS Measures section), based on gold sales of 2,574 ounces at an average gold price of C$2,242 per ounce sold and operating cash costs of C$2,087 per ounce sold. Operating cash flows were also impacted by changes in working capital, namely the increase in accounts payable and a decrease in stockpiled inventory.

The Company continued to invest in its key growth projects in Newfoundland and Nova Scotia in Q3 2021, spending $2,227,982 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals as of September 30, 2021), primarily on the continued advancement of the Goldboro Project ($1,350,359). The Company also invested $3,125,994 into the property, mill and equipment at the Point Rousse operation, with capital investment focused on development activity at Argyle during Q3 2021.

Non-IFRS Measures

Anaconda has included in this press release certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Operating Cash Costs per Ounce of Gold – Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however, excludes depletion and depreciation and rehabilitation costs.

All-In Sustaining Costs per Ounce of Gold – Anaconda has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.

The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price, operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant, and the Company uses the average foreign exchange rate for the period.

Average Realized Gold Price per Ounce Sold – In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) – EBITDA is earnings before finance expense, deferred income tax expense and depletion and depreciation.

Point Rousse Project EBITDA is EBITDA before corporate administration and other expenses (income).

Working Capital – Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.

ABOUT ANACONDA

Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project with Measured and Indicated Mineral Resources of 1.9 million ounces (16.0 million tonnes at 3.78 g/t) and Inferred Mineral Resources of 0.8 million ounces (5.3 million tonnes at 4.68 g/t) (Please see The Goldboro Gold Project Technical Report dated March 30, 2021), which is subject to an ongoing Feasibility Study. Anaconda also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, risks related to the COVID-19 pandemic, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda’s annual information form for the year ended December 31, 2020, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

FOR ADDITIONAL INFORMATION CONTACT:
Anaconda Mining Inc.
Kevin Bullock
President and CEO
(647) 388-1842
[email protected]

Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
[email protected]

SOURCE: Anaconda Mining Inc.

View source version on accesswire.com:
https://www.accesswire.com/671105/Anaconda-Mining-Announces-Third-Quarter-2021-Financial-Results

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Endeavour Silver Announces Filing of NI 43-101 Reports on Guanacevi and Bolanitos Projects

VANCOUVER, British Columbia, Jan. 19, 2022 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) announces…

VANCOUVER, British Columbia, Jan. 19, 2022 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) announces today that it filed two technical reports (the “Technical Reports”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

The Technical Reports are titled “NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico” and “NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico”. Both Technical Reports have an effective date of December 31, 2020 and support the disclosure made by the Company in its February 3, 2021 news release announcing the updated 2020 Mineral Reserve and Resource Estimates. There are no material differences in the Technical Reports from the information disclosed in the February 3, 2021 news release and the date of this filing.

The Technical Reports are available for download under the Company’s profile on SEDAR (www.sedar.com) and on the Company’s website (www.edrsilver.com).

About Endeavour Silver
Endeavour Silver is a mid-tier precious metals mining company that operates two high-grade, underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.  The Company’s philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: [email protected]
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn


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China Gold International Resources Corp. Ltd. Achieves Record Production and Exceeds Annual Guidance in 2021, Expecting Continued Output Growth in 2022

VANCOUVER – TheNewswire – January 19, 2022 – China Gold International Resources Corp. Ltd. (TSX:CGG); (HKEx:2099) (“China Gold International Resources”…

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VANCOUVER – TheNewswire – January 19, 2022 China Gold International Resources Corp. Ltd. (TSX:CGG); (HKEx:2099) (“China Gold International Resources or the Company) is pleased to provide preliminary full year production results for 2021 and announce annual production guidance for 2022.

2021 Preliminary Production Results Exceeds Annual Guidance:

•        The consolidated gold production is approximately 244,345 ounces (approximately 7.6 tonnes), exceeding the 2021 production guidance of 235,000 ounces by about 4%. The copper production is approximately 191 million pounds (approximately 86,400 tonnes), exceeding the 2021 production guidance of 177 million pounds by more than 7%. The above are preliminary results. The actual annual production data will be released in the 2021 annual financial statements of the Company.

Production Guidance for 2022:

•        The anticipated gold production will be between 241,130 ounces (7.5 tonnes) and 250,775 ounces (7.8 tonnes).

•        Total copper production is estimated to be between 187 million pounds (85,000 tonnes) and 198 million pounds (90,000 tonnes).

The Company’s Chairman and CEO, Mr. Liangyou Jiang, said, “2021 was an important year for the Company to enter a new stage of operations. We have successfully overcome unfavorable factors such as the Covid-19 pandemic, carefully organized production and continuously improved the quality of operations. As a result, the Company achieved record production for both gold and copper and exceeded the annual guidance in 2021. In 2022, we are confident to move towards higher goals and continue to create value for shareholders.”

Final Year-End 2021 Results:

The Company expects to report its 2021 annual financial statements by the end of March 2022. In connection with the release, management will hold its annual roadshow event to discuss the Company’s year-end results and performance.

 

About China Gold International Resources

China Gold International Resources is a gold and base metal mining company incorporated in BC, Canada and operates two mines, the CSH Gold Mine in Inner Mongolia, China and the Jiama Copper-Gold Polymetallic Mine in Tibet, China. The Company’s objective is to build shareholder value through growing production at its current mining operations, expanding its resource base, and acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).

For further information on the Company, please refer to SEDAR’s website at www.sedar.com, The Stock Exchange of Hong Kong Limited’s website at www.hkex.com.hk, the Company’s website at www.chinagoldintl.com, or call the Company at +1-604-609-0598 and email to [email protected]

Cautionary Note About Forward-Looking Statements

Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

Copyright (c) 2022 TheNewswire – All rights reserved.

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West High Yield (W.H.Y.) Resources Ltd. Announces Closing Under Equity Facility with Alumina Partners

Calgary, Alberta–(Newsfile Corp. – January 19, 2022) – West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) ("West High Yield" or the "Company") is pleased…

Calgary, Alberta–(Newsfile Corp. – January 19, 2022) – West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (“West High Yield” or the “Company“) is pleased to announce it has completed a second tranche closing (the “Second Tranche“) under the drawdown equity financing facility (the “Facility“) with Alumina Partners (Ontario) Ltd. (“Alumina“), an affiliate of New York-based private equity firm Alumina Partners LLC. Terms of the Facility were set forth in the Company’s news release dated December 14, 2021.

Under the closing of the Second Tranche, the Company issued 925,925 units (the “Units“) to Alumina at a price of CAD$0.54 per Unit for gross proceeds of CAD$500,000. Each Unit consists of one (1) common share of the Company (each, a “Share” and collectively the “Shares“) and one (1) Share purchase warrant (each, a “Warrant” and collectively the “Warrants“). The subscription price of the Units is based on the maximum allowable discounted closing price of the Shares on the TSX Venture Exchange (the “TSXV“) as reflected in the Form 4A filed with the TSXV by the Company on January 12, 2022. Each Warrant in the Second Tranche is exercisable into one additional Share at a price of CAD$0.8375 for 36 months from the date of closing. The closing of the Second Tranche is subject to the approval of the TSXV. All securities issued pursuant to the Second Tranche are subject to the statutory hold period that expires four months and one day from their issuance.

As previously noted in the Company’s news release dated December 14, 2021, the Company intends to use the funds under each tranche closing of the Facility to move forward with its pre-feasibility study stage-3 including the detailed design and economic evaluation of its demonstration plant, and to make preparations for mining of the magnesium ore in 2022 at its Record Ridge magnesium deposit in Rossland, British Columbia, Canada.

About West High Yield

West High Yield is a publicly traded junior mining exploration and development company focused on the acquisition, exploration, and development of mineral resource properties in Canada with a primary objective to develop its Record Ridge magnesium deposit using green processing techniques to minimize waste and CO2 emissions.

Contact Information:

West High Yield (W.H.Y.) Resources Ltd.
Frank Marasco, President and Chief Executive Officer
Telephone: (403) 660-3488 Facsimile: (403) 206-7159
Email: [email protected]

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

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 OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/110853






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