Variscan Mines Secures Financing for Zinc Exploration Projects

Variscan Mines Limited ("Variscan" or the "Company" or the “Group”) (ASX:VAR) is pleased to announce the completion of an interim placement of 49,000,000 ordinary shares at $0.006 each, raising a total of $294,000. Additionally, the Directors have provided $100,000 in working capital through unsecured loans. Details of these funding arrangements are outlined below.

Variscan’s Managing Director & CEO, Stewart Dickson, commented, “The current market conditions have indeed made the timing of this placement challenging. Despite the significant progress we’ve achieved since our last capital raise, this has not been reflected in our market value. The Board appreciates the ongoing support from our current shareholders and welcomes new investors to the Company. They share our confidence in our Spanish zinc projects, our strategy for advancing them, and the substantial value they present. We are advancing one of Europe’s highest-grade zinc deposits toward production restart. The funds from this capital raise will be invested in furthering our drilling programs and evaluating the potential reactivation of the San Jose Mine, particularly focusing on the promising Novales-Udias Project.”

The Company has secured interim funding by placing 49,000,000 shares at $0.006 per share (the Placement) with sophisticated and professional investors. This Placement raised $294,000 and included an attaching unlisted option, which will be issued subject to shareholder approval, at a rate of one option for every two shares purchased. These unlisted options will be exercisable at $0.01 each within two years from the date of issuance. The Placement shares were issued in accordance with the Company's capacity under Listing Rules 7.1 and 7.1A.

The Chairman, Mr. Tony Wehby, and Managing Director, Mr. Stewart Dickson, have each provided $100,000 in working capital loans to the Company. The key terms of these Director Loans are as follows: they are unsecured, and the Company has flexibility in the use of the funds. The loans are set to mature on 31 July 2025 and may be converted into ordinary shares, subject to the Company's choice and shareholder approval, on the same terms as the Placement. If not converted, the loans will accrue interest at a rate of 1% per month.

Variscan Mines Limited is a growth-focused natural resources company committed to acquiring, exploring, and developing high-quality strategic mineral projects. The company's main emphasis is on advancing its promising zinc projects in Spain. Variscan Mines Limited aims to generate shareholder value by advancing base and strategic metal deposits. The Company holds a portfolio of high-impact base metals projects in Spain, Chile, and Australia. Through carefully planned work programs, Variscan anticipates achieving early cash flow and/or substantial appreciation in project value.