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- Two-tranche placement to institutional and sophisticated investors
- Funds to unlock future scale potential at Novales-Udias project
- High-conviction investment specialist joint lead manager for raising
- Previously unreported assay results from historical underground drilling released
Variscan Mines (ASX:VAR) has received firm commitments for a two-tranche placement of new shares to investors to raise $5 million to support activities at its zinc development projects in Spain.
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At the same time the company has obtained previously unreported assay results from historical underground drilling and face sampling at the former producing Emilia and Margarita mines, situated within the Novales-Udias project.
“We are very pleased with the support received from high quality institutional and sophisticated investors which will enable Variscan to undertake meaningful exploration at our high-quality zinc development projects in Spain,” chairman, Tony Wehby, said.
“We look forward to using the funds raised to continue to advance the Novales-Udias project towards re- tarting production. Key deliverables will be drilling results and an updated mineral resource estimate.
“The board welcomes the support we have received from our existing shareholders and welcomes new shareholders to the company.”
The funds received are to be utilised for targeted drilling across the Novales-Udias project to expand the mineral resource base and unlock future scale potential.
The company is also targeting completion of metallurgical and engineering workstreams.
Subject to shareholder approval, directors have indicated their intention to participate in the placement with a substantive contribution from Tom Kent of $0.5 million.
Meanwhile, study data from historical underground drilling and face sampling from the Emilia and Margarita mines has been obtained to help advance Novales-Udias.
A 3D survey of underground workings at Emilia and Margarita has also been completed as the company ramps up activities at the Spanish project.
Variscan’s project drilling database now consists of 1,484 drillholes for 113,733, and a total batch of 70 face samples compiled over distance of nearly one km.
Mr Wehby said drilling results and sampling will support and guide the definition of high-priority targets for forthcoming surface drilling over step-out areas to be conducted in 2026.
“The drilling and the sampling indicate that there is excellent continuity of mineralisation extending, along strike, in a broad north-easterly direction from the San Jose mine for over four km and linking with the Emilia and Margarita mines.”
VAR is down 23.1% to 0.5¢. Mkt cap $8.111M.
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