Variscan Mines Limited (ASX:VAR) has announced it has secured firm commitments for a two-tranche placement, raising approximately A$2.5 million before costs. Variscan is focused on exploring and developing zinc assets, primarily in Spain, with a growing interest in European zinc opportunities. The placement, well-supported by existing shareholders and new investors, will fast-track the company’s growth strategy, particularly in advancing its high-grade zinc assets.
The funds raised will be strategically allocated to several key initiatives. A significant portion will support resource extension, definition, and discovery drilling at the Udias Mine, part of the Novales-Udias project in northern Spain. Additionally, the funding will enable the completion and publication of a Mine Re-Start (Scoping) Study and an updated Mineral Resource Estimate for the project. Variscan also plans to use part of the proceeds for a low-risk earn-in to highly prospective Zinc opportunities in Ireland.
According to Variscan’s Managing Director & CEO, Stewart Dickson, the placement is a strong endorsement of the company’s Explorer-Producer Strategy and its focus on high-quality zinc development projects. He highlighted the importance of the Novales-Udias Project, aiming for a production re-start, and the exciting potential of the new zinc projects in Ireland. The Tranche 2 placement and the earn-in are subject to shareholder approval at upcoming General Meetings.
The Placement was priced at A$0.0050 per share, representing a discount to recent trading prices. Tranche 1 is expected to settle on 12 August 2025, with Tranche 2 contingent upon shareholder approval in September 2025. The placement also includes the issue of free attaching options, subject to shareholder approval. Alpine Capital Pty Limited acted as Sole Lead Manager and Sole Bookrunner for the placement.
