Variscan Mines Limited (ASX:VAR) has announced the successful completion of the first tranche of its recently disclosed $5 million capital raise. The Australian mining exploration company, primarily focused on the discovery and development of significant zinc and lead deposits at its Novales-Udias Project in Spain, confirmed the settlement and allotment for this initial stage of the placement on 19 May 2026. This initial tranche has notably advanced the company’s financial objectives, attracting considerable interest from the investment community.
The initial phase of the placement secured approximately $0.69 million before costs, marking a significant step towards the overall $5 million funding target. This was achieved through the issue of 174,064,708 ordinary shares, each priced at $0.004. Variscan Mines highlighted that the placement received strong support from a range of new sophisticated and professional investors, underscoring market confidence in the company’s exploration activities and future prospects. The company confirmed that all shares issued under this tranche will rank equally with existing fully paid ordinary shares on issue as of the announcement date, maintaining equitable treatment for shareholders.
In a related financial update, Variscan Mines also confirmed the termination of its Convertible Loan Facility. The company stated that this facility, which had been put in place earlier in the year on 30 January 2026, remained entirely undrawn throughout its term and has now concluded in accordance with its established provisions. The successful initial capital raise, coupled with the termination of the undrawn loan facility, serves to streamline the company’s financing structure and provide essential working capital for its ongoing exploration and development initiatives. Further details regarding the allotment were provided in an accompanying Appendix 2A and cleansing statement.
