Variscan Mines Limited Announces Interim Funding for Zinc Project
VARISCAN MINES LIMITED (VAR) Share Update July 2024 Monday 22nd
Variscan Mines Secures Interim Funding for Zinc Project
Variscan Mines Limited (ASX:VAR) has successfully completed an interim funding round, raising $294,000 to further progress its Novales-Udias zinc project in Spain.
Instant Summary:
- Raised $294,000 through the issue of 49,000,000 new ordinary shares at $0.006 per share.
- Placement supported by Zinc GroupCo and new sophisticated investors.
- Zinc GroupCo maintains a 19.9% shareholding in the Company.
- Directors provided an additional $100,000 in unsecured working capital loans.
Interim Funding Details
Variscan Mines Limited (ASX:VAR) has announced the completion of an interim funding round, raising $294,000 through the placement of 49,000,000 new ordinary shares at $0.006 per share. This funding will support the ongoing development of the Novales-Udias zinc project in Spain.
The placement was well-received, attracting support from the Company's largest shareholder, Zinc GroupCo, as well as new sophisticated investors. As a result, Zinc GroupCo maintains a 19.9% shareholding in Variscan Mines.
Director Loans and Support
In addition to the placement, Variscan's directors have provided $100,000 in unsecured working capital loans. These loans are convertible into new shares on the same terms as the interim placement, subject to shareholder approval. The loans have a maturity date of 31 July 2025 and attract an interest rate of 1% per month if not converted.
Furthermore, directors have deferred remuneration entitlements of approximately A$300,000 to assist the Company in its exploration and development programs. It is proposed to convert some of this deferred remuneration into new ordinary shares, subject to shareholder approval.
Strategic Focus
Variscan's Managing Director & CEO, Stewart Dickson, expressed gratitude for the ongoing support from shareholders and welcomed new investors. He emphasized the Company's commitment to advancing its high-grade zinc projects in Spain and highlighted the potential value opportunity presented by the Novales-Udias project.
The proceeds from this capital raise will be used to continue the exciting drilling programs and associated studies to evaluate restarting production at the San Jose Mine.
The successful completion of this interim funding round is a positive development for Variscan Mines. It provides the necessary capital to continue progressing the Novales-Udias zinc project, which is one of the highest-grade, development-stage zinc deposits in Europe. This funding will likely boost investor confidence and could positively impact the Company's stock price.
Investor Reaction:
Investors and analysts have reacted positively to the news, appreciating the strategic focus on high-grade zinc projects and the support from major shareholders like Zinc GroupCo. The additional funding from directors further underscores the confidence in the Company's future prospects.
Conclusion:
Investors should keep an eye on Variscan Mines as it continues to advance its zinc projects in Spain. The successful interim funding round and strong shareholder support indicate a promising future for the Company. Stay informed on Variscan Mines' progress and consider the potential long-term benefits of this strategic development.