West High Yield (W.H.Y.) Resources Ltd. Signs Definitive Forward Sales Agreement to Sell Magnesium Ore from Its Record Ridge Project
MWN-AI** Summary
West High Yield (W.H.Y.) Resources Ltd. announced a pivotal forward sales agreement with Galaxy Trade and Technology, LLC for the sale of magnesium-rich serpentine ore from its Record Ridge Industrial Minerals Mine project in British Columbia. This agreement solidifies a long-term commercial relationship, establishing a committed market for the ore and facilitating West High Yield's transition toward production.
Under the agreement, Galaxy will purchase the ore over an initial two-year term, with the option to extend to nine years. An initial deposit of USD$5 million will secure initial deliveries, with a unit price set at USD$500 per metric tonne during the initial period. Production is expected to yield between 6,600 and 7,700 metric tonnes of ore weekly once operations commence, translating into potential revenues exceeding USD$30 million annually.
This agreement marks a significant milestone for West High Yield, particularly following the receipt of a Mines Act permit in October 2025, allowing the project to advance to construction. With the Record Ridge deposit noted for its substantial and high-grade magnesium content, the project is poised to establish West High Yield as a key supplier in the global magnesium market—an essential material in industries like aerospace, automotive, and advanced manufacturing.
Frank Marasco Jr., President and CEO of West High Yield, emphasized the importance of securing a long-term purchaser, stating it lays a strong commercial foundation for upcoming production phases. Meanwhile, Galaxy’s Board Chairman expressed confidence in the potential of West High Yield, having closely monitored its progress through a rigorous permitting process.
As West High Yield prepares for construction and production, it plans to keep stakeholders informed of developments and additional commercial arrangements related to this promising project.
MWN-AI** Analysis
West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) has recently made significant strides in its operations with the execution of a definitive forward sales agreement with Galaxy Trade and Technology, LLC. This deal not only secures a stable market for their magnesium ore from the Record Ridge Project but also establishes a promising revenue stream projected to exceed USD$30 million annually during the initial two-year production period.
Investors should view this development as a major turning point for West High Yield. The committed partnership with a reputable U.S. supplier like Galaxy is a strong endorsement of the potential value of West High Yield’s magnesium resources, which are crucial for various industries including aerospace and automotive manufacturing. The ability to sell 6,600 to 7,700 metric tonnes of ore weekly emphasizes the scale of operations and the anticipated demand for magnesium in the future.
Moreover, with construction preparations underway and the necessary permit in place, West High Yield is well-positioned for a successful transition into a production phase expected to commence soon. The upfront deposit of USD$5 million from Galaxy serves as an indicator of confidence in the project's viability, offering financial stability as the company scales its operations.
However, potential investors should remain mindful of certain risks, including regulatory hurdles and market fluctuations in the commodity sector, which could impact profitability. Despite these challenges, the current macroeconomic environment favoring green technologies positions West High Yield favorably in the critical mineral space.
In summary, while the forward sales agreement is encouraging, investors should conduct thorough due diligence considering the inherent risks associated with mining ventures. Overall, West High Yield appears poised for growth, making it an intriguing consideration for investment portfolios focused on sustainable and emerging technologies in resource extraction.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Calgary, Alberta--(Newsfile Corp. - March 12, 2026) - West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (FSE: W0H) ("West High Yield" or the "Company") is pleased to announce that it has executed a definitive forward sales agreement (the "Agreement") with Galaxy Trade and Technology, LLC, a U.S.-based international magnesium supply company ("Galaxy"), for the purchase and sale of magnesium-rich serpentine ore (the "Ore") produced by West High Yield from its Record Ridge Industrial Minerals Mine project ("RRIMM Project") project located near Rossland, British Columbia, Canada.
The Agreement, stemming from the letter of intent signed between Galaxy and the Company news released on December 7, 2022, establishes a long-term commercial partnership between the two companies, secures a committed market for the Ore produced from the RRIMM Project and supports the Company's transition toward mine development and production.
Under the Agreement, among other things, Galaxy will purchase the Ore from the RRIMM Project over an initial two (2) year period with an option to extend to a nine (9) year term. The Agreement requires an initial USD$5,000,000 deposit to be placed with the Company, in trust, to fund the initial Ore deliveries. The Agreement further establishes a unit price of USD$500 per metric tonne of Ore during the initial two (2) year period, with delivery quantities of Ore expected to range between approximately 6,600 and 7,700 metric tonnes per week during operating months once production at the RRIMM Project begins.
The Agreement represents potential revenue exceeding USD$30,000,000 per year for the Company during the initial two (2) year period and production stage. The Agreement marks a major milestone in the commercialization of the RRIMM Project and establishes the first long-term supply relationship for the Ore to be produced at the RRRIM Project.
Frank Marasco Jr., President and CEO of West High Yield states: "This Agreement with Galaxy represents a significant step forward for our RRIMM Project. With permitting in place and construction preparations underway, securing a committed long-term purchaser provides a strong commercial foundation as we move toward production. Record Ridge hosts one of the largest and highest-grade magnesium deposits of its type globally, and we are pleased to partner with Galaxy to bring this strategic resource to international markets."
Michael North, Board Chairman and CEO of Galaxy, states: "Galaxy executives have followed West High Yield, and talked to its executives regularly, for more than five years, as West High Yield advanced through challenging permit processes in Canada. We congratulate West High Yield, its management, shareholders and stakeholders, on today's announcement, and look forward to supporting the continued success of West High Yield in the years to come."
The RRIMM Project received its Mines Act permit from the Province of British Columbia in October 2025 and is advancing toward construction, with initial production expected following completion of site development.
The Record Ridge deposit contains magnesium-rich serpentine mineralization located approximately 7.5 kilometers from the town of Rossland in southeastern British Columbia and approximately 5 kilometers from the United States border. The Company holds 100 percent mineral rights of the deposit.
Magnesium is strategically recognized as a critical mineral due to its growing importance in aerospace, automotive lightweighting, energy systems, defense applications, and advanced manufacturing. The RRIMM Project positions West High Yield as a potential future supplier of magnesium feedstock to global markets.
The Company will provide further updates as it advances post permit compliance activities, completes remaining project permitting and construction preparations, and finalizes additional commercial arrangements related to the project.
About Galaxy Trade and Technology, LLC
Galaxy is a direct source of magnesium, from mine to manufacturer, revolutionizing entire industries with light, strong, versatile, durable and energy-efficient magnesium. An international company based in the United States, Galaxy is streamlining global supply chains, offering both standard and custom alloys for enhanced performance. Galaxy is helping to move the global economy from heavy metals to light metals of the future: clean, green, less carbon-intensive, bending the curve on climate change.
About West High Yield
West High Yield is a publicly traded junior mining exploration and development company, established in 2003, and 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 based on an independently produced National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") Preliminary Economic Assessment technical report (titled "Revised NI 43-101 Technical Report Preliminary Economic Assessment Record Ridge Project, British Columbia, Canada") prepared by SRK Consulting (Canada) Inc. on April 18, 2013 in accordance with NI 43-101 and which can be found on the Company's profile at https://www.sedarplus.ca.
Qualified Person
Rick Walker, B.Sc., M.Sc., P.Geo., the Company Geologist is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical information in this press release.
Contact Information:
WEST HIGH YIELD (W.H.Y.) RESOURCES LTD.
Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488
Email: frank@whyresources.com
Barry Baim, Corporate Secretary
Telephone: (403) 829-2246
Email: barry@whyresources.com
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 TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288152
FAQ**
How does West High Yield Resources Ltd. (W.H.Y.) plan to use the USD$5 million deposit from Galaxy Trade and Technology, LLC to enhance the development of its RRIMM Project near Calgary, Alberta, as it prepares for initial production?
In what ways could the partnership between West High Yield (WHYRF) and Galaxy Trade and Technology influence the local economy in Calgary and its surrounding areas as the magnesium supply project progresses?
What strategies is West High Yield Resources Ltd. employing to ensure environmental sustainability in the development of the RRIMM Project located near Calgary, Alberta, while aiming to produce magnesium?
How does the agreement between W.H.Y. Resources and Galaxy impact the future market dynamics for magnesium-rich serpentine ore, particularly regarding supply chain efficiencies for industries based in Calgary and beyond?
**MWN-AI FAQ is based on asking OpenAI questions about West High Yield (W.H.Y.) Resources Ltd. (TSXVC: WHY:CC).
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