Funding to accelerate drilling and development activities at flagship Spanish zinc project
Variscan Mines (ASX:VAR) has completed the first tranche of its recently announced $5 million capital raising, securing strong support from new sophisticated and professional investors as the Company advances development and exploration activities at its high-grade Novales-Udías Zinc Project in Spain.
The first tranche raised approximately $0.69 million before costs through the issue of 174,064,708 ordinary shares at $0.004 per share, with settlement and allotment now completed.
The capital raise follows increasing investor interest in near-term zinc development opportunities amid tightening global zinc supply conditions and growing strategic demand for critical industrial metals.
Variscan’s flagship Novales-Udías Zinc Project is located in the prolific Basque-Cantabrian Basin in northern Spain, approximately 30km southwest of Santander and within trucking distance of Glencore’s San Juan de Nieva zinc smelter. The project hosts a JORC Mineral Resource and multiple brownfield exploration and development opportunities across a 9km mineralised trend.
Importantly, the Company recently delivered a positive Re-Start Study for the San José Mine, outlining a staged, capital-light pathway toward production and early cash flow generation.
Variscan Chairman Tony Wehby said the support received for the raising reflected growing recognition of the strategic value of the Company’s Spanish zinc assets.
“The strong support received from both existing and new investors highlights the increasing interest in high-grade zinc projects with clear development pathways and existing infrastructure advantages,” Mr Wehby said.
“The completion of this first tranche further strengthens the Company’s position as we continue advancing the Novales-Udías Project and progressing our explorer-to-producer strategy.”
Funds raised under the Placement are expected to support ongoing drilling, development studies and broader project advancement activities across the Novales-Udías Zinc Project.
The Novales-Udías Project is strategically located near the historic Reocín Mine, regarded as one of the world’s richest Mississippi Valley-Type (MVT) zinc deposits. Variscan has identified significant exploration upside across multiple granted mining tenements and surrounding target areas.
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About Variscan Mines Limited
Variscan Mines Limited is an ASX-listed exploration and development company focused on advancing its high-grade zinc assets in Spain. The Company’s flagship Novales-Udías Project is located in the Basque-Cantabrian Basin, one of Europe’s premier zinc regions, and hosts a significant JORC Mineral Resource with extensive brownfield infrastructure and exploration upside.
Variscan is pursuing a staged explorer-to-producer strategy aimed at unlocking value through resource growth, development studies and potential near-term production opportunities. The Company’s projects benefit from proximity to existing infrastructure, including nearby processing and smelting facilities.
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Jane Morgan
Jane Morgan Management
Investor & Media Relations
