pcJ News Briefs – West High Yield (W.H.Y.) Resources Ltd. (TSX-V: WHY) has terminated previously announced asset sale agreement with Gryphon Enterprises, LLC pursuant to which Gryphon had agreed to acquire 100% of its right, title and interest in West High Yield’s Record Ridge South, Midnight and O.K. mineral properties for US $750 million.
Gryphon Enterprises was required to deliver a non-refundable deposit of US $500,000 on or before November 4, 2017. As November 4, 2017 did not fall on a “Business Day”, the deadline to deliver the deposit was extended to midnight on November 6, 2017. Gryphon Enterprises failed to deliver the required deposit on or before midnight on November 6, 2017.
Following discussions with the purchaser, on November 7, 2017 West High Yield board of directors decided to terminate the agreement by providing written notice of termination to the purchaser in accordance with the terms of the agreement.
West High Yield (W.H.Y.) Resources said it continues to believe, based on testing done to date, that the Assets have significant value. The company intends to continue its ongoing efforts to secure Mining and Rock Quarry Permits for the property.
photo credit: West High Yield
News Release
West High Yield Terminates Agreement to Sell Mining Assets After Purchaser Fails to Pay Deposit
CALGARY, Alberta, Nov. 07, 2017 — As previously announced, on October 5, 2017, West High Yield (W.H.Y.) Resources Ltd. (the “Company”) (TSXV:WHY) signed a definitive arm’s length purchase and sale agreement (the “Agreement”) to sell 100% of its right, title and interest in its Record Ridge South, Midnight and O.K. mineral properties (the “Assets”) to Gryphon Enterprises, LLC (the “Purchaser”), a limited liability company based in Maryland, USA, for a purchase price of US$750 million in cash.
Under Article 2.2.3 of the Agreement, the Purchaser was required to deliver a non-refundable Deposit of US$500,000 (“Deposit”) on or before November 4, 2017, failing which the Company had the right to terminate the Agreement if the deposit was not paid. As November 4, 2017 did not fall on a “Business Day”, the deadline to deliver the Deposit extended to midnight on November 6, 2017.
The Purchaser failed to pay the Deposit on or before midnight on November 6, 2017. Following discussions with the Purchaser, on November 7, 2017 the Board of Directors of the Company decided to terminate the Agreement by providing written notice of termination to the Purchaser in accordance with the terms of the Agreement.
Although the Company is disappointed that the Agreement was terminated, the Company continues to believe, based on testing done to date, that the Assets have significant value. The Company intends to continue its ongoing efforts to secure Mining and Rock Quarry Permits for the property.
Trading in the Company’s shares has been halted since October 6, 2017. The Company is in discussions regarding when its shares will resume trading.
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:
Frank Marasco
President and Chief Executive Officer
West High Yield (W.H.Y.) Resources Ltd.
Telephone: (403) 660-3488
Facsimile: (403) 206-7159
Email: frank@whyresources.com
Dwayne Vinck
Chief Financial Officer
West High Yield (W.H.Y.) Resources Ltd.
Telephone: (403) 257-2637
Facsimile: (403) 206-7159
Email: vinck@shaw.ca