West High Yield Resources: Capitalizing on Magnesium's Potential with Strategic Warrants and Permit Momentum

West High Yield Resources (W.H.Y.) is poised to unlock significant value from its flagship Record Ridge critical mineral project, leveraging a meticulously structured warrant exercise and advancing toward final regulatory approvals. As the company nears the completion of its permitting process and capitalizes on a surging demand for sustainable energy materials, investors stand to benefit from a rare confluence of strategic financing, operational readiness, and environmental stewardship. Here's why this moment demands attention—and action.

The Warrant Exercise: A Masterclass in Capital Efficiency

West High Yield's recent private placement, finalized in March 2025, exemplifies a capital-efficient strategy. By offering Units priced at CAD$0.23—comprising one Common Share and one Warrant exercisable at CAD$0.35—the company secured CAD$399,717 in gross proceeds for its final tranche. Crucially, this structure positions the warrants as a potential lever for future upside: if the share price rises above $0.35, warrant holders will likely exercise their options, injecting additional liquidity into the company.

The broader Offering, totaling CAD$1.07 million, has been allocated to critical milestones, including finalizing permits and advancing operations. This approach minimizes dilution while maximizing near-term cash flow—a stark contrast to companies that over-leverage or dilute shareholders. The 12-month warrant expiration (with the final tranche's warrants expiring March 2026) creates a clear catalyst for investors to act before the window closes.

Permit Readiness: A Green Light for Development

The Record Ridge project has cleared a major hurdle: on May 28, 2025, British Columbia's Environmental Assessment Office (EAO) issued a Draft Minister's Designation Report, concluding that the project's environmental impacts are sufficiently managed under existing regulations. This determination avoids a lengthy formal environmental assessment, saving time and costs.

Equally pivotal is the endorsement of the Osoyoos Indian Band (OIB), which has partnered with the company through its subsidiary, Skemist Solutions. This collaboration ensures local stakeholder alignment and reduces social license risks—a hallmark of ESG-conscious projects. Furthermore, the company is finalizing a Vegetation Management Plan to address concerns about sensitive ecosystems like the Mountain Holly Fern, demonstrating proactive compliance.

With the mining permit in its final technical review stage, approval could come within months, putting the project on track for development. This timeline is critical: delays are minimized, and the company's path to production is clearer than ever.

The Economics of a Game-Changing Deposit

The Record Ridge deposit is no ordinary project. With 24.6% magnesium content in 43 million tonnes of ore, it represents one of North America's largest and highest-grade magnesium/silica deposits. A pre-feasibility study (PFS) from 2022 highlights staggering economics:
- After-tax NPV at 5%: CAD$872 million
- Internal Rate of Return (IRR): 72% over a 172-year mine life
- Payback Period: 1.5 years

These figures underscore the project's financial resilience, even under conservative assumptions. The use of hydrometallurgical processing (HCI leaching) further strengthens its case: this zero-waste, low-CO₂ method aligns with global ESG priorities while reducing operational costs.

Why Act Now?

The confluence of factors—strategic capital management, permit momentum, and a high-margin asset—creates a compelling case for investment:
1. Warrant Expiration Risk: The 12-month warrant window (expiring March 2026) offers a limited-time opportunity to secure shares at a discounted rate.
2. Permit Finalization: With regulators nearing a decision, the removal of regulatory uncertainty could trigger a revaluation of the company's equity.
3. Magnesium's Boom: The surge in demand for magnesium—a key material for electric vehicle batteries and renewable energy infrastructure—positions the company to capitalize on a $50 billion market projected by 2030.

Risks and Considerations

While the outlook is promising, investors should note:
- The stock is subject to a four-month hold period from issuance dates.
- Regulatory approvals, though progressing positively, are not yet final.
- Warrant holders may dilute current shareholders if exercised en masse.

However, the company's progress to date, coupled with its experienced management team—including CEO Frank Marasco Jr. and geologist Rick Walker—suggests these risks are being mitigated effectively.

Final Call to Action

West High Yield Resources is at an inflection point. The combination of a well-structured warrant exercise, advancing permits, and a project with transformative economics makes this a high-conviction opportunity. Investors seeking exposure to critical minerals and sustainable energy should act swiftly: the window to secure warrants at $0.35 closes in just under a year, and regulatory approvals could ignite a sharp upward trajectory for the stock.

The path to magnesium's future runs through Record Ridge—and so does the path to outsized returns.

Invest now while the warrants remain in play—and before the market fully recognizes the value of this critical mineral giant.