Variscan Mines Ltd (ASX:VAR) will raise $2.5 million in new capital via a share placement and a pro rata entitlement offer to expand the exploration programs at the company’s multiple exploration licences in France.
Variscan has secured $1 million from institutional and sophisticated investors through a share placement at $0.018 per share, representing an 18% discount to the 10 day volume weighted average share price.
Additionally, the company’s major shareholders and directors, Mr Kwan Chee Seng and Dr Foo Fatt Kah have committed to take up their rights entitlement at the same price, equating to $503,000.
The rights Issue will also be underwritten by a further $500,000 by Patersons Securities.
Variscan’s programs in France include drilling at the Merléac project, which had returned encouraging results of 800 ppm zinc, 6.1% lead, and 1840 ppm copper from surface sampling.
Earlier this month, Variscan had started drilling for gold at the St Pierre exploration licence in Brittany which was home to France's third largest gold mine until 1952.
Interestingly, Variscan’s portfolio in France includes Tin as well, with drilling planned at the Beaulieu Exploration Licence over a tin rich region 40 kilometres north of the port city of Nantes.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.