Variscan Mines Secures Strongly Supported A$5 Million Placement to Accelerate Drilling at High-Grade Spanish Zinc Projects
Placement strongly supported by sophisticated and institutional investors to accelerate drilling and resource growth across the Novales-Udías Zinc Project in northern Spain
Variscan Mines (ASX: VAR) is pleased to announce it has received firm commitments for a strongly supported A$5 million placement to sophisticated and institutional investors, providing the Company with funding to accelerate drilling and development activities across its high-grade zinc assets in Spain.
The Placement was completed at an issue price of A$0.055 per share and was strongly supported by existing shareholders alongside new institutional and sophisticated investors.
Funds raised will primarily be directed toward accelerating underground drilling and development activities at the Company’s flagship Novales-Udías Zinc Project in northern Spain, including ongoing work associated with the San José Mine Re-Start Study and resource growth initiatives targeting the broader Novales-Udías mineralised system.
The raising positions Variscan to continue advancing its strategy of transitioning from explorer to producer at one of Europe’s most advanced undeveloped zinc projects, located in the highly prospective Basque-Cantabrian Basin in northern Spain.
Variscan’s Novales-Udías Project hosts multiple high-grade zinc deposits and historic mine workings located approximately 30km southwest of Santander and within trucking distance of Glencore’s San Juan de Nieva zinc smelter.
The Placement follows continued operational momentum at the Project, including the recent release of the San José Mine Re-Start Study, which outlined a staged, capital-light pathway toward potential zinc production and early cash flow generation.
The Company said the additional capital will support ongoing underground drilling designed to expand known mineralisation outside the current Mineral Resource Estimate and further assess the scale potential of the wider Novales-Udías system.
Variscan Mines Chairman Anthony Wehby said:
“We are very pleased with the strong support received from existing shareholders and new institutional and sophisticated investors as we accelerate the next phase of drilling and development activities at our high-grade zinc assets in Spain.
This funding places Variscan in a strong position to build on the momentum generated by the recently completed San José Mine Re-Start Study and continue advancing our strategy of transitioning toward near-term zinc production in Europe”
He said the Placement would provide the Company with a strong funding platform to accelerate drilling and development activities at its Spanish zinc assets.
Variscan continues to position itself as a leveraged exposure to zinc and critical raw materials supply into Europe, amid increasing focus on supply chain security and domestic sourcing of strategic metals.
Zinc remains a critical industrial metal widely used in galvanised steel, infrastructure and renewable energy applications, with European supply constraints and limited new project development continuing to support long-term market fundamentals.
About us:
Variscan Mines is an ASX-listed exploration and development company focused on advancing its portfolio of high-grade zinc projects in Spain.
The Company’s flagship Novales-Udías Zinc Project is located in the Basque-Cantabrian Basin of northern Spain, one of the world’s premier zinc regions and home to the historic Reocín Mine, formerly one of Europe’s largest zinc operations.
Variscan is focused on advancing the San José Mine toward a potential production restart while simultaneously growing the broader Novales-Udías mineralised system through ongoing exploration and underground drilling programs.
The Company’s strategy is centred on becoming a near-term European zinc producer at a time of increasing focus on critical raw materials supply security and domestic sourcing within Europe.
Contact details:
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