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  • Variscan Mines (VAR) receives binding commitments to undertake a $4.25 million share placement
  • More than 53.12 million shares will be issued to sophisticated and institutional investors at 8 cents apiece
  • Subject to shareholder approval, 625,000 shares will be taken up by an entity associated with Managing Director Stewart Dickson to raise $50,000
  • Variscan will use the money to carry out exploration at the Novales-Udias Project with priority on undertaking follow-up drilling at the San Jose Mine
  • Variscan has ended the day 8.41 per cent in the red with shares trading at 8.6 cents

Variscan Mines (VAR) has received binding commitments to undertake a $4.25 million share placement.

The company entered a trading halt on June 17 but did not disclose how much it intended to raise or what it would use the funds for.

The money will be raised through the issue of 53,125,000 shares to sophisticated and institutional investors at 8 cents.

This price represents a 14.8 per cent discount to Variscan’s closing price of 9.4 cents on June 16 and a 13.9 per cent discount to the 15-day volume-weighted average price of 9.3 cents.

Subject to shareholder approval, 625,000 shares will be taken up by an entity associated with Managing Director Stewart Dickson to raise $50,000.

Variscan will use the money to carry out exploration at the Novales-Udias Project in Spain, with priority on undertaking follow-up drilling at the San Jose Mine.

Shares are expected to settle on June 25 and be issued and begin trading on the ASX on June 28.

“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,” Mr 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.”

Variscan has ended the day 8.51 per cent in the red with shares trading at 8.6 cents, with a $20.02 million market cap.

VAR by the numbers
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