Deals

The $750 Million Magnesium Deal That Came Up $750 Million Short

West High Yield says buyer failed to pay $500,000 deposit
Canadian explorer in talks to resume trading of shares

Rocks from a survey pit sit on the grounds near a West High Yield (W.H.Y.) Resources Ltd. GPS survey coordinate outside of Rossland, British Columbia, Canada
Photographer: Ben Nelms/Bloomberg

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By Danielle Bochove, Natalie Obiko Pearson, and Kristine Owram

November 8, 2017 at 12:21 AM UTC

Updated on

November 8, 2017 at 5:00 AM UTC

This article is for subscribers only.

It was one of 2017’s mega mining deals. And then it wasn’t.

West High Yield (W.H.Y.) Resources Ltd. -- the tiny Canadian explorer that surged nearly 1,000 percent last month after announcing a pact to sell its main assets for $750 million -- said the deal has collapsed. The buyer couldn’t come up with a deposit for less than 1 percent of the transaction value, or $500,000.