Variscan in placement to accelerate drilling at the exciting San Jose discovery
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Investors have demonstrated their support for Variscan by oversubscribing for a $4.25m placement to fund further exploration at its San Jose mine in Spain.
Firm commitments for the placement of more than 53 million shares priced at 8c each – a 13.9% discount to the 15-day volume weighted average price – was received from existing shareholders as well as attracting new sophisticated and institutional investors from North America, UK, Europe and Asia.
Variscan Mines (ASX:VAR) says this is a strong endorsement of its recent zinc-lead discovery and positions it with a strong cash balance of circa $5m to execute an aggressive exploration over the Novales-Udias project.
This includes follow-up drilling at San Jose and drilling high priority targets on the surrounding Buenahora licence area.
Recent drilling at La Caseta, a high-grade mineralised lens located beneath the main gallery in the central zone of San Jose, returned results such as 23m grading 11.51% zinc and 3.7% lead, 18m at 9.87%Zn and 3.24%Pb and 11m at 9.95%Zn and 5.58%Pb.
“The placement received very strong interest with demand exceeding the funds ultimately being sought by the company and utilising available placement capacity in a quickly executed transaction,” managing director Stewart Dickson said.
“With the recent success drilling at the San Jose Mine, we are excited to continue the momentum by accelerating exploration efforts throughout the remainder of 2021.”
Dickson will be subscribing for $50,000 worth of shares under the placement.
Assays are pending for a further 30 drill holes where visible zinc mineralisation has been observed while drilling is expected to resume shortly.
Variscan is currently interpreting assay results from drilling at the South West Zone as it receives them.
It is also mapping and sampling surface drill targets over the Buenahora licence area.
An application for surface drilling is currently pending and the company expects to kick off surface and/or underground drilling in the third quarter of 2021.
Plans are also afoot for mapping and sampling of drill targets over the Guajaraz project in Castilla La Mancha.
This article was developed in collaboration with Variscan Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.