The Osoyoos Indian Band and West High Yield Resources (TSXV: WHY) have signed a co-operation agreement regarding the company’s Record Ridge magnesium project near Rossland, southern British Columbia. The company says the deal was negotiated based on its commitment to advancing sustainability, sound environmental practices, good governance, and respecting Indigenous rights.
The Osoyoos band undertook its own independent review of the application made by WHY for a B.C. mining permit.
“This agreement recognizes Osoyoos Indian Band’s sovereignty over our lands and represents our continued efforts to ensure that our lands are protected and managed in accordance with our wishes, values, and principles. This agreement assures us of our oversight of the project, thereby protecting our peoples’ environmental and economic interests,” said Chief Clarence Louie. “Our independent review of the company’s mining application reinforces our commitment to working with the company going forward.”
WHY holds a 100%-interest in the mineral rights of Record Ridge. Measured and indicated resources total 43 million tonnes grading 24.61% magnesium for 10.6 million tonnes. The inferred portion is 1 million tonnes grading 24.37% magnesium for 260,000 tonnes. A cut-off of 21.9% magnesium was used in these calculations.
A prefeasibility study for Record Ridge put its after-tax net present value with a 5% discount at US$872 million, with an internal rate of return of 72%. The open pit mine has a 20-year life and will use a proprietary hydrometallurgical process to produce magnesia (MgO) of at least 99% purity.
Production is slated to start in the fourth quarter of 2023, with output estimated to come to 250,000 tonnes per year.
WHY shares traded at 28¢ on Monday afternoon in Toronto, valuing the company at $24 million. Its shares traded in a 52-week range of 22¢ and 55¢.
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