- Variscan Mines (VAR) secures $1.85 million through a capital raise led by new cornerstone investor Zinc GroupCo
- Natural resources-focused group ZincCo subscribes to $1.3 million in shares at 1.8 cents per share
- A further $550,000 was raised, with strong support from existing major shareholders
- ZincCo’s investment supports Variscan to wrap up its planned concept study to assess the re-start potential of the San Jose mine
- Shares in VAR are up 11.1 per cent, trading at 2 cents at 2:38 pm AEDT
Variscan Mines (VAR) has secured $1.85 million through a capital raise supported by new cornerstone investor Zinc GroupCo.
Natural resources-focused group ZincCo subscribed for $1.3 million in shares and may provide funding of up to $2.3 million via attaching options. ZincCo subscribed for 72,222,222 new shares at 1.8 cents per share.
Variscan raised the additional $550,000 thanks to strong support from existing major shareholders.
ZincCo said its investment was to support Variscan to complete its planned concept study to assess the re-start potential of the San Jose mine.
“The capital raise announced today gives us the additional funding required to progress our plan to further prove up and expand the resources at and around the highly-prospective San Jose mine,” Variscan’s Managing Director and CEO, Stewart Dickson, said.
Variscan said ZincCo stakeholders held an abundance of experience in developing global resource projects and brought abilities that could assist Variscan with marketing and trading future zinc products in due course.
“ZincCo has experience in investing and supporting companies that are pursuing drill-ready, highly-qualified zinc exploration assets and/or near-term production opportunities,” Mr Dickson added.
“The San Jose mine and wider Novales-Udias project clearly fit ZincCo’s focus areas.”
The company is progressing towards publishing a maiden JORC-compliant mineral resource estimate and report on the mine re-start concept study for the San Jose mine during 2023.
Shares in VAR were up 11.1 per cent and trading at two cents at 2:38 pm AEDT.