Australia's Variscan Mines slides on capital raising

Altoro Metals

21/06/2021 03:39

** Shares of Variscan Mines Ltd  VAR.AX  fall as much as
8.5% to A$0.086, their lowest level since June 4
    ** The precious metals explorer says it got binding
commitments to raise A$4.3 mln ($3.2 mln) to accelerate drilling
at the San Jose mine [https://bit.ly/3gIkLPt
]
    ** Co to issue 53.1 mln new shares under the placement,
priced at A$0.08/share, a discount of nearly 15% to stock's last
close on June 16, after which shares were on trading halt
    ** New shares make up ~39% of co's free float, according to
Refinitiv data
    ** Stock headed for its fourth straight day of losses
    ** Stock has tripled in value this year, as of last close

($1 = 1.3307 Australian dollars)

 (Reporting by Yamini C S)
 ((Yamini.CS@thomsonreuters.com;))