Investors are wondering what the heck, what’s up with $WHY? The stock remains halted after a blockbuster US$750 million deal was announced Oct 5th with Gryphon Enterprises.
West High Yield Resources Ltd ($WHY.V) has signed a definitive arm’s-length purchase and sale agreement to sell 100 per cent of its right, title and interest in its Record Ridge South, Midnight and O.K. mineral properties to Gryphon Enterprises LLC, a company based in Maryland, United States, for a purchase price of US$750-million. The magnesium rich land entails 7,891 acres near Trail and Rossland, and according to the CEO of West High, “If you calculate the three sections of the land, there is about 3,000 years of supply” of magnesium that can potentially be extracted from the property.
Wow. For real?
The agreement includes representations and warranties to each party customary in a transaction of this nature and is subject to a number of conditions. But is the deal the real thing or not?
West High Yield will call a special shareholders meeting to seek approval for the deal in December. Gryphon Enterprises is quiet.
Financial Post had this to say:
“According to a company filing, the Toronto offices of law firm Baker McKenzie represents the purchaser Gryphon. Greg McNab, a partner at the firm who is also its global head of mining practice, was unaware of the transaction.
‘We’re not aware of any role in it,’ McNab said by phone Thursday.”
Magnesium is coming up in conversation a lot these days.
Hmmmm. Where will $WHY’s share price settle or spike once the halt is off?
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