Funds to Boost Spanish Zinc Project Development
Variscan Mines has successfully completed the first tranche of its $5 million capital raising initiative, aimed at progressing its Novales-Udías Zinc Project in Spain. The announcement was made on 19th May.
Raising approximately $0.69 million, the initial tranche involved the issuance of 174,064,708 ordinary shares at $0.004 each. This effort has garnered strong support from both new and existing sophisticated investors.
Amid increasing global interest in zinc due to tightening supply conditions and rising demand for industrial metals, the capital raise is timely. Variscan plans to use the funds to advance drilling and development activities at the zinc-rich Novales-Udías site.
Situated in the Basque-Cantabrian Basin, the Novales-Udías Project is roughly 30km southwest of Santander. Its strategic location near Glencore’s San Juan de Nieva smelter offers logistical advantages. The project hosts a JORC Mineral Resource and provides multiple exploration opportunities along a 9km mineralised trend.
Strategic Importance of the Zinc Project
A positive Re-Start Study for the San José Mine was recently released by Variscan, which outlines a phased and cost-effective approach to production. The project’s proximity to the historic Reocín Mine, one of the world's richest MVT zinc deposits, offers significant exploration potential.
Chairman Tony Wehby expressed confidence in the company's strategy, stating, "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."
Ongoing drilling and development studies will be facilitated by the raised funds. Variscan aims to transition from explorer to producer, advancing the broader project scope at the Novales-Udías site.
Existing infrastructure and strategic location, including nearby smelting facilities, provide Variscan with a competitive edge in the zinc market.
With a significant JORC Mineral Resource and exploration upside, Variscan Mines Limited is well-positioned to capitalise on the growing demand for critical industrial metals. The company's flagship project in Spain is a key asset in its explorer-to-producer strategy.
