Variscan Mines Advances San José Mine Restart With Robust Scoping Study and New Funding

Variscan Mines Limited ( (AU:VAR) ) just unveiled an announcement.

Variscan Mines has completed a Scoping Study for restarting underground mining at the San José Mine within its Novales-Udías Project in Spain, outlining an economically robust starter operation with a potential 11-year mine life and low pre-production capital of about A$33 million. The study utilises only around half of the current mineral resource, indicating significant scale-up potential, and targets initial concentrate production in 2028, supported by ongoing underground drilling to expand resources and a funding strategy focused on non-dilutive structures.

To advance this development, the company secured a binding term sheet for a A$1 million convertible loan note facility, initiated board and management changes to align with the project’s next phase, and continued negotiations on an Irish zinc earn-in while retaining a 49% interest in the Callabonna Project. These steps underscore Variscan’s transition from explorer to producer and its broader effort to strengthen its project pipeline and funding position, although the San José plans remain contingent on successful financing and permitting.

More about Variscan Mines Limited

Variscan Mines Limited is an ASX-listed mineral exploration and development company focused on zinc projects, notably the Novales-Udías Zinc Project in northern Spain. The company is pursuing an explorer-to-producer strategy, leveraging existing underground infrastructure to accelerate development while also maintaining interests in Irish zinc assets and the Callabonna Project in Australia.

Technical Sentiment Signal: Sell

Current Market Cap: A$9.98M

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