West High Yield enters deal to sell Record Ridge ore

Executive Summary

• West High Yield (W.H.Y.) Resources Ltd. signed a definitive forward sales agreement with Galaxy Trade and Technology LLC for the sale of magnesium-rich serpentine ore from its Record Ridge industrial mineral mine project (RRIMM) in British Columbia, Canada.
• The agreement secures a long-term commercial partnership, establishing a committed market for the ore and supporting the company's transition toward mine development and production.
• The deal includes a $5 million U.S. deposit, a unit price of $500 U.S. per metric tonne, and potential annual revenue exceeding $30 million during the initial two-year period.

Key Details

• Counterparty: Galaxy Trade and Technology LLC (U.S.-based international magnesium supply company).
• Asset: Magnesium-rich serpentine ore from the Record Ridge industrial mineral mine project (RRIMM) near Rossland, B.C.
• Term: Initial two-year period with an option to extend to a nine-year term.
• Financial Terms:
  • Deposit: $5 million (U.S.) placed in trust to finance initial ore deliveries.
  • Unit Price: $500 (U.S.) per metric tonne of ore for the initial two-year period.
  • Projected Revenue: Potential revenue exceeding $30 million (U.S.) per year during the initial two-year production stage.
• Production Volumes: Delivery quantities expected to range between approximately 6,600 and 7,700 metric tonnes per week during operating months once production begins.
• Project Status: The RRIMM project received its Mines Act permit from the Province of British Columbia in October 2025. Construction preparations are underway, with initial production expected following site development completion.
• Resource Details: The Record Ridge deposit contains approximately 10.6 million tonnes of contained magnesium based on a Preliminary Economic Assessment (PEA) by SRK Consulting (Canada) Inc. dated April 18, 2013. The company holds 100% mineral rights.
• Strategic Context: Magnesium is recognized as a critical mineral for aerospace, automotive, energy, and defense applications.

Notable Quotes

• Frank Marasco Jr., President and CEO of West High Yield: "This agreement with Galaxy represents a significant step forward for our RRIMM project. With permitting in place and construction preparations under way, 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: "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."