West High Yield Resources (TSXV:WHY) (“West High Yield” or the “Company”) announces the following corporate developments.
The Mines Act of British Columbia (the “Act”) and the accompanying Health, Safety and Reclamation Code for Mines in British Columbia (the “Code”) protect workers and the public through provisions for minimizing the health, safety and environmental risks related to mining activities. The Act and the Code set out the regulatory framework for an applicant applying for a permit and authorization to mine in the province.
A foundational element in this permitting framework is gathering the baseline environmental data to identify the existing environmental conditions of the proposed project. The Company began this process of collection and assessment of environmental conditions in 2016 and will continue this for the foreseeable future. This information will allow the Company to plan for the protection and reclamation of the land, watercourses and conservation of the cultural heritage resources affected by its planned mine.
With a background of project environmental baseline studies, the submission of detailed Project Description to the British Columbia Ministry of Energy, Mines and Petroleum Resources (“MEMPR”) initiates the permitting engagement and review process. The Company submitted the Record Ridge Magnesium Project Description to the MEMPR on May 23, 2018.
The review process is led by the MEMPR but includes many other government agencies including the British Columbia Ministry of Environment and Climate Change Strategy and Ministry of Forests, Lands, Natural Resource Operations and Rural Development, together with First Nations. Since the Magnesium at Record Ridge is found in the industrial mineral serpentinite, the permitting Application is for the construction, operation, closure and reclamation of an Industrial Mineral Mine with annual extraction of up to 249,000 tonnes per year of Magnesium-rich serpentinite for a two-year period. The Magnesium-rich material would be transported off-site to a processing facility to produce Magnesium Oxide.
During the summer, the Company and its consultants have been engaged in gathering and completing the extensive information required by the Ministry of Energy and Mines for an Industrial Mineral Mine Application and an effluent discharge permit application under the Environmental Management Act by the Ministry of Environment. The Company has met formally with the reviewers and regulators on several occasions to assess its progress and seek guidance in providing the information required. The Company expects to submit its Permit Application in early November, 2018 and the Permit Application screening and review process is expected to take until the spring of 2019.
In late August, 2018, the MEMPR authorized the first year exploration of a multi-year, area based program of mineral exploration on certain Record Ridge claims. Recently, the Company successfully completed a three diamond drill hole program completing two water monitoring wells for geotechnical and ground water quality information for the Permit Application and one exploration step-out drill hole. Core samples will be sent to a certified laboratory for analysis and will be reported in due course.
In late 2017, the Company engaged Kingston Process Metallurgy Inc. (“KPM”) of Kingston, Ontario to evaluate Magnesium processing and recovery alternatives and to conduct metallurgical testing on the Company’s Magnesium bearing serpentine, with the objective of producing high value commercial grade magnesia (MgO) and Mg(OH)₂ products from the Record Ridge serpentine.
The Company’s PEA completed by SRK Consulting of Lakewood, Colorado in 2013 utilized a sulfuric acid leach process with a 60% recovery rate and no recycling of the leachate. After reviewing the extraction using hydrochloric, sulphuric and nitric acid processes, KPM recommended that the Company return to its initial metallurgical processing initiative using hydrochloric acid. Subsequent metallurgical testing directed by KPM utilized a commercial hydrochloric acid processing circuit that has a higher recovery rate and full leachate acid recovery. KPM is working closely with a European process engineering, design and equipment manufacturer that has had this process and equipment installed in an operating serpentine magnesium processing facility since 1992. The test results have been encouraging and the Company expects to begin the prefeasibility studies shortly on this process.
The Company has during 2016 and 2017 engaged Drinkard Metalox, Inc. for magnesium hydrometallurgical testing. Drinkard Metalox, Inc. has filed a Statement of Claim in Alberta claiming approximately $297,000 USD for alleged outstanding invoices owing by the Company to it relating to the magnesium hydrometallurgical testing. The Company has filed a Statement of Defence in response on the basis that the work provided by Drinkard Metalox was deficient and failed to comply with the contractual requirements and has filed a counterclaim seeking damages of approximately $228,000 CAD relating to the negligent work and various breaches of contract committed by Drinkard Metalox, Inc. The action is in the preliminary stages. The Company has included in its financial statements for the year ended December 31, 2017 and six months ended June 30, 2018 an amount of approximately $408,000 USD.
The Company is also involved in minor litigation including a small claim in Quebec for $14,000 and a Class Action Claim in Ontario for $115,000. Both claims are based upon press releases issued by the Company in October, 2017 and are being defended by the Company.
Included in the MD&A for the six months ended June 30, 2018 was disclosure of the Company having Common Shares issued and outstanding of 69,806,479. The Company corrected the MD&A to reflect the correct issued and outstanding Common Shares as at August 28, 2018 of 63,003,421.
About West High Yield
West High Yield is a publicly traded junior mining exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada with a primary objective to locate and develop economic gold, nickel and magnesium properties.
|For further information please contact:|
President and Chief Executive Officer
West High Yield (W.H.Y.) Resources Ltd.
Telephone: (403) 660-3488
Facsimile: (403) 206-7159
Chief Financial Officer
West High Yield (W.H.Y.) Resources Ltd.
Telephone: (403) 257-2637
Facsimile: (403) 206-7159
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the Company’s corporate and business plans, including its permit applications, metallurgical testing and results, planned prefeasibility study, its defence of the litigation matters and the counter-claim against Drinkard Metalox Inc. 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; stock market volatility; competition for, among other things, skilled personnel and supplies; changes in tax laws; and the 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.
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 press release.
Not for distribution in the United States. This news 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.