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This Junior Miner Surged Almost 1,000% in a Day After Asset Sale

  • CEO thinks $750 million price tag is what these assets deserve
  • West High Yield has no revenue; traded at 36 cents Tuesday
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Photographer: Simon Dawson/Bloomberg
Updated on

West High Yield (W.H.Y.) Resources Ltd., a little-known Canadian miner, surged as much as 1,000 percent after it said it sold a magnesium deposit to a U.S. buyer for $750 million -- or 46 times the company’s market value.

West High Yield, which has no revenue, jumped five-fold in Toronto trading to close at C$2 after it released a statement saying it sold its main assets to Swanton, Maryland-based Gryphon Enterprises LLC. The shares, which trade under the ticker WHY, had closed Wednesday at 36 cents for a market value of just C$20.6 million ($16.4 million).