Variscan Mines settles first tranche of placement

Variscan Mines (ASX:VAR) finalised the initial stage of its capital injection, announcing that the first tranche of its recently publicised $5 million placement has settled and allotment is complete.

The capital raising initiative, which was first introduced to the market via an ASX announcement on May 11, secured strong backing from a diverse group of new sophisticated and professional institutional investors.

This opening tranche successfully injected approximately $0.69 million into the mineral exploration company prior to associated transaction costs.

The capital was secured through the strategic issuance of 174,064,708 fully paid ordinary shares, which were priced competitively at $0.004 per share.

Corporate officials confirmed that all newly allocated shares under this placement will rank equally with Variscan’s existing fully paid ordinary shares currently trading on the market from the date of the announcement.

In a concurrent operational update, Variscan advised the market regarding a shift in its debt structuring.

The company reported that the convertible loan facility, which had originally been established earlier in the year following a market update on Jan. 30, remained completely undrawn throughout its duration.

Consequently, this facility has now been formally terminated in strict accordance with its original terms.

At the time of reporting, Variscan Mines’ share price was $0.0060.