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Variscan Mines to raise $2.4M for Spanish projects

Mining
ASX:VAR      MCAP $2.653M
10 October 2019 22:46 (AEST)

Variscan Mines has received commitments to raise $2.4 million for its recently purchased zinc projects in Spain.

The company will issue 1.2 billion shares at a price of 0.2 cents each to institutional and sophisticated investors.

This placement and the recent purchase of the Spanish Zinc assets will increase the total funds raised to $3 million.

The funds raised will assist the fast-tracking of the purchase and exploration of the advanced zinc projects in Spain.

Recently, Varsican obtained two projects in Spain, which include the Novales-Udías project.

The Novales-Udías Project is located in the Basque-Cantabrian Basin, approximately 30 kilometres south west from the regional capital, Santander.

Novales is centred around the former producing Novales underground mine and a large area of exploration opportunities.

“Upon receipt of shareholder approval to finalise the acquisition, it is expected that
fieldwork would commence shortly thereafter at the Novales-Udias Zinc Project in the Cantabria Region of Spain, which is located adjacent to the world class Reocin Deposit,” the company said.

Members of the Board have agreed to contribute $250,000, which will be brought up at the the company’s annual meeting.

On finalising the purchase of the projects, the company is expected to begin fieldwork at the Novales project.

Fieldwork will include surfacing mapping, and soils and rock-chip sampling to refine drilling targets for an upcoming initial drill program.

Patersons Securities Limited acted as lead manager to the placement.

Variscan Mines is up 50 per cent on the Australian Securities Exchange today and is selling shares at 0.3 cents apiece.

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