Variscan Mines Secures $2.5 Million Capital Raise to Advance High-Grade Zinc Projects

Highlights:

• Variscan Mines Ltd (ASX: VAR) has secured AU$2.5 million through a two-tranche share placement to accelerate its zinc development strategy.
• Funds will be used for drilling, resource updates, and advancing the Mine ReStart Study at the high-grade Novales-Udias zinc project in Spain.
• The capital raise also supports a low-risk earn-in to zinc exploration assets in Ireland, expanding Variscan’s European footprint.

Two-Tranche Placement Receives Strong Backing from Institutional Investors

Variscan Mines Limited (ASX: VAR) has successfully secured firm commitments for a two-tranche capital raise of approximately AU$2.5 million before costs, aimed at accelerating its zinc exploration and development strategy. At the time of writing, the placement has been well-supported by existing significant shareholders while also attracting new sophisticated investors to the company’s register.

The placement is priced at AU$0.005 per share, representing a 28.6% discount to Variscan’s last closing price on 31 July 2025. The capital raise is structured in two parts: Tranche 1, which will raise AU$587,143 through the issue of 117.4 million shares under the company’s existing placement capacity, and Tranche 2, a conditional placement to raise AU$1.91 million via 382.6 million new shares, pending shareholder approval at an upcoming General Meeting in September 2025.

Proceeds to Drive Drilling, Resource Estimates, and Irish Zinc Projects

The funds raised will be deployed towards resource extension and discovery drilling at the Novales-Udias zinc project in Cantabria, Spain. Additionally, the company plans to finalise and publish its Mine ReStart (Scoping) Study and deliver an updated Mineral Resource Estimate. Part of the capital will also support a low-risk earn-in agreement for prospective zinc assets in Ireland, alongside providing general corporate and operational working capital.

Strategic Expansion into Ireland’s Zinc Belt

Variscan’s earn-in agreement with BMEx Pty Ltd grants the company staged access to 100% ownership of zinc-rich assets in Ireland, further diversifying its European portfolio. The company views this as a significant opportunity to leverage its zinc expertise in a proven mining jurisdiction.

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