Variscan Mines Finalizes $5 Million Capital Raise and Secures Shareholder Approval for Rebranding to Altoro Metals Limited

Complete $5 Million Placement Achieved Through Two Tranches at $0.004 Per Share

Variscan Mines confirmed the settlement and allotment of the second and final tranche of its $5 million placement, fulfilling the total capital raise initially announced on 11 May 2026. The first tranche raised approximately $0.69 million before costs by issuing 174,064,708 ordinary shares at $0.004 each, supported by sophisticated and professional investors, demonstrating strong market interest.

The second tranche, raising about $4.31 million before costs, required shareholder approval due to the volume of shares issued and director participation. Approval was granted at the 10 July 2026 General Meeting, after which 1,075,935,292 ordinary shares were allotted at the same $0.004 price. Combined, both tranches issued a total of 1,250,000,000 ordinary shares, all ranking equally with existing fully paid shares as of the update date.

Director Investment of $0.6 Million Reflects Confidence in Variscan’s Strategic Direction

Significantly, company directors collectively invested $0.6 million in the Tranche 2 placement, signaling internal confidence in Variscan’s prospects and valuation at $0.004 per share. While individual director contributions were not disclosed, shareholder approval of this participation complied with ASX Listing Rules and was secured at the 10 July 2026 General Meeting. This alignment of interests is a common approach for junior explorers to demonstrate board conviction during capital raises.

Shareholders Approve 416,666,666 Lead Manager Options at $0.008 Exercise Price

Shareholders also approved the issuance of 416,666,666 Lead Manager Options, exercisable at $0.008 each on or before 29 September 2028. This exercise price is double the placement price, meaning options will only be exercised if the share price exceeds this level before expiry. These options are standard compensation for brokers facilitating the placement and, if fully exercised, would increase capital but dilute existing shareholders. The Lead Manager’s identity and services were not disclosed in this update.

Shares Issued to Feldi Limited in Lieu of Fees Following Approval

The 10 July 2026 General Meeting also approved issuing 16,875,000 ordinary shares to Feldi Limited as payment in lieu of fees. These shares were issued at $0.004 each and rank equally with other fully paid shares. Although the company did not specify the services provided or fee value, the implied value based on the placement price is $67,500. Investors seeking details on Feldi Limited’s engagement should consult the company or ASX filings.

Shareholders Endorse Rebranding to Altoro Metals Limited

A key outcome of the General Meeting was shareholder approval for changing the company name from Variscan Mines Limited to Altoro Metals Limited. The change will take effect once all regulatory approvals are completed, though no specific timeline or ASX ticker update was provided. Name changes often reflect strategic repositioning, and investors should anticipate further communications clarifying the company’s new direction under the Altoro Metals brand. Until formalized, the company will continue trading as Variscan Mines Limited (ASX:VAR).

Novales Zinc-Lead Project in Northern Spain Remains Core Asset

Variscan’s principal asset is the Novales Project in the Basque-Cantabrian Basin, roughly 30 kilometres southwest of Santander, Spain. The project centers on the former San Jose underground mine and includes extensive exploration targets such as satellite workings and zinc anomalies identified through geochemical surveys. Variscan has delineated a 12-kilometre mineralized trend and a parallel 3-kilometre trend across the Buenahora exploration and Novales mining permits.

The project benefits from proximity to significant infrastructure and geological precedent, including the nearby Reocin Mine—Spain’s largest carbonate-hosted zinc-lead deposit—and the San Juan de Nieva zinc smelter operated by Glencore-owned Asturiana de Zinc, located about 80 kilometres away. Although still at exploration stage, these factors could support future development.

Experienced Geological Oversight Supports Exploration Efforts

Dr. Mike Mlynarczyk, Principal of Redstone Exploration Services, oversees the Novales Project’s technical work. Dr. Mlynarczyk is a Professional Geologist (PGeo), European Geologist (EurGeol), and Fellow of the Society of Economic Geologists, qualifying as a Competent Person under the JORC Code (December 2012). The project includes granted mining tenements, providing regulatory certainty. While historical data is encouraging, the company has not disclosed resource estimates or production timelines, emphasizing its status as an explorer.

Capital Structure Impact of $5 Million Raise on Existing Shareholders

The $5 million placement has significantly increased Variscan’s shares on issue, with 1,250,000,000 ordinary shares issued across both tranches plus 16,875,000 shares to Feldi Limited. The 416,666,666 Lead Manager Options, if exercised, would further expand the share count. This dilution may affect shareholders who did not participate in the placement. The company has not detailed the allocation of proceeds in this update, so investors should review prior disclosures for use-of-funds information. The immediate effect on share price was not publicly available at the time of reporting.

Risks for Variscan as an Early-Stage Zinc Explorer in Spain

As an early-stage explorer, Variscan faces inherent risks including the uncertainty of defining commercially viable mineral resources and the long timeline to potential production. Operating in Spain introduces regulatory, currency, and logistical challenges. The substantial capital raise increases share dilution, which may pressure the share price if perceived negatively by the market. The approved name change to Altoro Metals Limited introduces a transitional phase requiring market adjustment to the new corporate identity and strategy.