Announcement PDF Variscan Mines Limited ABN 16 003 254 395 HALF YEAR FINANCIAL REPORT 31 DECEMBER 2015 Contents Directors’ Report ................................................................................................................................................................. 1 Consolidated Statement of Comprehensive Income ........................................................................................................... 3 Consolidated Statement of Financial Position ..................................................................................................................... 4 Consolidated Statement of Changes in Equity .................................................................................................................... 5 Consolidated Statement of Cash Flows .............................................................................................................................. 6 Notes to the Consolidated Financial Statements ................................................................................................................. 7 Directors’ Declaration ........................................................................................................................................................ 13 Independent Auditor’s Review Report ............................................................................................................................... 14 Auditor’s Independence Declaration ................................................................................................................................. 16 Corporate Directory ........................................................................................................................................................... 17 Directors’ Report Your Directors submit their report on the Consolidated Entity (the Group) consisting of Variscan Mines Limited (Variscan or the Company) and the entities it controlled at the end of, or during, the half year ended 31 December 2015. Directors The names of the Company’s Directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. Patrick Elliott Non-Executive Chairman Greg Jones Managing Director Kwan Chee Seng Non-Executive Director Dr Foo Fatt Kah Non-Executive Director Dr Jack Testard Executive Director Mike Moore Non-Executive Director Porte-aux-Moines was discovered by the BRGM (Bureau de Recherches Géologiques et Minières - the French geological survey) in 1975. Over the ensuing decade the group completed 9,673 metres of core drilling and just under two kilometres of underground development defining significant high grade zinc-leadcopper-silver mineralisation up to 20 metres thick from near surface to a depth of about 300 metres. Over the last six months Variscan has 1. Received further high grade zinc results from ALS assays of historical drill core at the Porteaux-Moines including  including 6.5 metres @ 9.3% zinc, 1.9% lead, 1.5% copper, 142.9 g/t silver, 1.4 g/t gold from 304.5 metres (21.4% Zn Eq) (appointed 4 August 2015)  Review and results of operations The net result of operations after applicable income tax expense for the half year was a Group loss of $731,677 (2014: loss of $2,685,380), which includes the write-off of exploration and business development expenditure in the current half year of $10,947 (2014: $145,682). Successfully completed a VTEM survey and modeling work over southern section of Merléac which identified 14 ‘Tier 1’ high priority targets with some exhibiting similar geophysical characteristics to Porte-aux-Moines. The Porteaux-Moines VTEM anomaly extends for approximately 400 metres, potentially increasing strike length of currently defined high grade mineralisation. 3. Commenced work converting the large amount of historic data for Porte-aux-Moines to electronic formats in preparation for the calculation of a Resource to 2012 JORC standards. Assays for 56 out of 58 historical holes drilled into deposit have been received. A significant number of intersections at >15% Zn Eq are present with an individual assay intervals up to 50.3% Zn equivalent present. France Variscan commenced activities in France in 2010 and was granted its first French exploration licence (PER) in June 2013. To date the Company has received approvals for six licences and has two others well advanced within the approvals process. Merléac The Merléac PER covers 411 square kilometres over the Châteaulin Basin, a sequence of felsic volcanics and clastic sedimentary rocks containing a number of volcanogenic massive sulphide (VMS) deposits including the advanced Porte-aux-Moines zinc-leadcopper-silver deposit which lies near the centre of the licence about 100 kilometres west of Rennes, Brittany. 1 > Variscan Mines Limited PAM8 - 3.0 metres @ 17.2% zinc, 3.7% lead, 1.53% copper, 159.3 g/t silver, 1.9 g/t gold from 237 metres (32.2% Zn Eq) 2. Exploration Variscan is one of the most active ASX listed junior resource companies in western Europe. The Company has targeted Europe for mineral deposits due to its favourable geology, strong mineral endowment, good infrastructure and relatively modest sovereign risk. PAM16 - 19.5 metres @ 6.5% zinc, 1.0% lead, 1.3% copper, 94.5 g/t silver, 1.0 g/t gold from 301.5 metres (zinc equivalence of 15.3% Zn Eq), St Pierre The St Pierre PER covers 386 square kilometres over an important gold district believed to have been the third largest gold producer in France. Within the PER, the La Bellière gold mine is recorded to have produced about 334,000 ounces of gold (plus silver) from 1906 to 1952, up to a maximum depth of 170 metres intermittently over a strike length of about 1.6 kilometres. Directors’ Report St Pierre (continued) Recent field work by Variscan has included further extensional sampling around the Belleville prospect south of the St Pierre township. This work continues to provide strong encouragement. Former work by Variscan defined an 800 x 500 metre zone of strongly anomalous values up to 809 ppb gold (0.81g/t gold) (see ASX announcement dated 2 June 2015). The new work has extended this anomaly approximately 100 metres to the west and recorded higher grade gold-insoil values up to 2.4g/t gold (or 2420ppb gold) within the main area of anomalism, clearly highlighting the strength of the prospect. Planning for follow-up drilling is in progress. New Licences Two additional high quality exploration licences granted during the review period, Silfiac (lead-zinc-germanium) and Loc Envel (tungsten). Both licences contain advanced projects with potential for high grade discoveries. Assessment work and data retrieval has commenced.  Pursuant to the Placement of Shares announced on 25 November 2015 the Placement entitled the subscribers to one unlisted option (exercisable at $0.05 per share with an expiry date of 29 January 2018) for every two shares issued. On 29 January 2016 the issue of options was approved at the Company’s EGM and 29,347,830 unlisted options were issued under these terms. Auditor’s independence declaration A copy of the Auditor’s Independence Declaration to the Directors as required under section 307C of the Corporations Act 2001 is set out on page 16. th Signed at Sydney this 14 day of March 2016 in accordance with a resolution of the Directors. Corporate The Company successfully completed a share placement and share purchase plan, with A$1.55 million raised (before costs). The Placement was underpinned by a cornerstone investment by Acorn Capital Limited, one of Australia’s most successful institutional investors into the resource sector. Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Greg Jones, BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. Mr Jones is a Director and full-time employee of Variscan Mines Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Significant events after the balance date There were, at the date of this report, no matters or circumstances which have arisen since 31 December 2015 that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years, other than: 2 > Variscan Mines Limited Greg Jones Managing Director Consolidated Statement of Comprehensive Income For the half year ended 31 December 2015 31 Dec 2015 $ 1,352,078 31 Dec 2014 $ 169,604 ASX and ASIC fees (51,092) (19,424) Contract administration services (62,512) (59,839) Depreciation expense (42,871) (31,566) Directors’ fees (74,762) (77,512) Exploration and business development expenditure (10,947) (145,862) Impairment of investment (155,777) (955,070) Insurance (23,058) (27,059) Revenue and other income Note 4 Loss on options - (955) Marketing and media costs (40,823) (307) Motor vehicle running costs (34,028) (31,247) Operating lease rental expense Employee costs net of on-costs recharged to exploration projects Share of net losses of associate accounted for by the equity method Share-based compensation (58,220) (59,537) (570,350) (576,473) (89,607) (103,123) (123,255) (142,415) Travel and accommodation (54,836) (49,558) Other expenses from ordinary activities (166,316) (41,693) (Loss) before income tax expense (206,376) (2,152,036) Income tax (expense) (525,301) (533,344) (Loss) after income tax expense (731,677) (2,685,380) Items that may be reclassified to profit or loss Amounts transferred from reserves to the income statement on sale Income tax on items of other comprehensive income (141,000) (46,835) 42,300 14,051 Other comprehensive (loss) for the period, net of tax (98,700) (32,784) Total comprehensive (loss) for the period (830,377) (2,718,164) Other comprehensive income Earnings per share Basic (loss) per share (cents per share) 12 (0.23) (1.53) Diluted (loss) per share (cents per share) 12 (0.23) (1.53) The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes. 3 > Variscan Mines Limited Consolidated Statement of Financial Position As at 31 December 2015 Note 31 Dec 2015 $ 30 Jun 2015 $ Cash and cash equivalents 5 1,388,947 1,714,414 Receivables 6 280,295 321,619 1,669,242 2,036,033 ASSETS Current assets Total current assets Non-current assets Investments – available for sale 7 1,126,623 478,729 Investment in associates 8 792,857 687,143 Receivables 6 24,171 23,740 258,259 232,272 9 2,995,858 2,272,301 Property, plant and equipment Deferred exploration and evaluation expenditure Deferred tax asset 277,244 732,050 Total non-current assets 5,475,012 4,426,235 Total assets 7,144,254 6,462,268 Trade and other payables 312,095 499,340 Provisions 117,449 125,392 Total current liabilities 429,544 624,732 54,509 50,091 LIABILITIES Current liabilities Non-current liabilities Provisions Total non-current liabilities 54,509 50,091 Total liabilities 484,053 674,823 6,660,201 5,787,445 Net assets EQUITY Equity attributable to equity holders of the parent Contributed equity 10 17,942,769 16,413,561 Reserves 11 605,381 1,056,991 (11,887,949) (11,683,107) 6,660,201 5,787,445 Accumulated losses Total equity The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 4 > Variscan Mines Limited Consolidated Statement of Changes in Equity For the half year ended 31 December 2015 Contributed equity $ 14,526,115 Accumulated losses $ (10,449,634) (Loss) for the period - Other comprehensive loss - Total comprehensive loss for the period Reserves $ 3,547,839 Total equity $ 7,624,320 (2,685,380) - (2,685,380) - (32,784) (32,784) - (2,685,380) (32,784) (2,718,164) - 696,042 (696,042) - - - 51,303 51,303 Share-based payments - - 142,415 142,415 At 31 December 2014 14,526,115 (12,438,972) 3,012,731 5,099,874 At 1 July 2015 Contributed equity $ 16,413,561 Accumulated losses $ (11,683,107) Reserves $ 1,056,991 Total equity $ 5,787,445 (Loss) for the period - (731,677) - (731,677) Other comprehensive loss - - (98,700) (98,700) Total comprehensive loss for the period - (731,677) (98,700) (830,377) 10 1,529,208 - - 1,529,208 11 - 526,835 (526,835) - 11 - - 50,670 50,670 - - 123,255 123,255 17,942,769 (11,887,949) 605,381 6,660,201 At 1 July 2014 Transactions with owners in their capacity as owners: Transfer expired options to Retained Earnings Foreign currency Transactions with owners in their capacity as owners: Issue of share capital (net of share issue costs) Transfer expired options to Retained Earnings Foreign currency Share-based payments At 31 December 2015 11 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 5 > Variscan Mines Limited Consolidated Statement of Cash Flows For the half year ended 31 December 2015 Note 31 Dec 2015 $ 31 Dec 2014 $ (1,205,794) (1,221,578) 107,545 153,037 9,229 41,767 (1,089,020) (1,026,774) Cash flows from operating activities Payment to suppliers and employees Consultancy fees received and rental income Interest received Net cash flows (used in) operating activities Cash flows from investing activities Purchase of plant and equipment (62,151) (52,725) Exploration and business development expenditure (792,318) (576,894) - 19,668 (5,000) - Tenement security deposit refunds/(payments) and other Purchase of equity investments Sale of equity investments 105,502 - Net cash flows (used in) investing activities (753,967) (609,951) 1,595,000 - (81,000) - Net cash flows from financing activities 1,514,000 - Net (decrease) in cash and cash equivalents (328,987) (1,636,725) Cash and cash equivalents at beginning of period 1,714,414 2,408,993 3,520 19,003 1,388,947 791,271 Cash flows from financing activities Proceeds from issue of shares and options Share issue costs Net foreign exchange differences Cash and cash equivalents at end of period 5 The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 6 > Variscan Mines Limited Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 1. Corporate information The financial report of Variscan Mines Limited (Variscan or the Company) for the half year ended 31 December 2015 th was authorised for issue in accordance with a resolution of the Directors on 14 March 2016. Variscan Mines Limited (the parent) is a company incorporated in Australia as a Public company. Variscan shares are publicly traded on the Australia Securities Exchange under ASX Code VAR. The nature of the operations and principal activities of the Group are described in the Directors’ Report. 2. Basis of preparation of the half year financial report The half year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report. The half year financial report should be read in conjunction with the annual Financial Report of Variscan as at 30 June 2015. It is also recommended that the half year financial report be considered together with any public announcements made by Variscan during the half year ended 31 December 2015 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001. Basis of Preparation The half year consolidated financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134 Interim Financial Reporting and other mandatory professional reporting requirements. The half year financial report has been prepared on a historical cost basis except for Available for Sale Investments and Derivatives, which have been measured at fair value. For the purpose of preparing the half year financial report, the half year has been treated as a discrete report period. Significant Accounting Policies The half year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2015. Basis of Consolidation The half year consolidated financial statements comprise the financial statements of Variscan Mines Limited and its subsidiaries (the Group). The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. The subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. The Group includes Variscan Mines Limited and its wholly owned subsidiaries. Going Concern The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Directors believe that the Group will have sufficient working capital to meet its minimum project development and administrative expenses in the next twelve months following the date of signing of the financial report. The entity successfully raised $1.6 million of capital during the period and the Directors are investigating options to raise additional funds to allow the Group to pursue its project opportunities and reduce its working capital requirements with the intent that the consolidated group continues as a going concern. If all of these options are unsuccessful, this may indicate there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. 7 > Variscan Mines Limited Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 3. Segment information The operating segments identified by management are as follows: (a) (b) Exploration projects funded directly by Variscan (“Exploration”) operating in France and Australia and; Investments in other companies (“Investing”). Regarding the Exploration segment, the Chief Operating Decision Maker (the Board of Directors) receives information on the exploration expenditure incurred. This information is disclosed in Note 9 of the half year financial report. No segment revenues are disclosed as each exploration tenement is not at a stage where revenues have been earned. Furthermore, no segment costs are disclosed as all segment expenditure is capitalised, with the exception of expenditure written off which is disclosed in Note 9. Regarding the Investing segment, the Chief Operating Decision Maker reviews the value of investments and derivatives held in other exploration companies. The changes in the value of investments and derivatives are disclosed in Notes 7 and 8 of the half year financial report. Segment revenues are disclosed in the statement of comprehensive income as ‘Gain/(loss) on options’. Financial information about each of these tenements is reported to the Managing Director on an ongoing basis. Corporate office activities are not allocated to operating segments as they are not considered part of the core operations of any segment and comprise of the following:  Interest revenue  Corporate costs  Depreciation and amortisation of non-project specific property, plant and equipment The Group’s accounting policies for reporting segments are consistent with those disclosed in Note 2. 4. Revenue and other income 31 Dec 2015 $ 31 Dec 2014 $ Interest received – other persons/corporations 5,546 21,735 Rental income 33,390 36,420 Consulting fees 71,960 111,449 Impairment recovery of investments 141,000 - Gain on deemed disposal relating to an associate 900,000 - Gain on associate investments 195,322 - 4,500 - Revenue Other Income Profit on sale of available for sale investments Unrealised gain on foreign currency 5. 360 - 1,352,078 169,604 31 Dec 2015 $ 30 Jun 2015 $ Cash and cash equivalents Cash at bank and in hand Short-term deposits 8 > Variscan Mines Limited 1,388,947 332,574 - 1,381,840 1,388,947 1,714,414 Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 6. Receivables 31 Dec 2015 $ 30 Jun 2015 $ R&D tax concession and other tax refunds 200,175 195,226 GST receivable 33,851 35,511 Current Interest receivable 443 4,126 Prepayments 27,077 64,658 Other debtors 18,749 22,098 Total current receivables 280,295 321,619 24,171 23,740 31 Dec 2015 $ 30 Jun 2015 $ 814,500 - Non-current Rental bonds 7. Investments – available for sale Investments – TMZ (a) Investments – AGR (b) 65,003 188,000 Investments – SCI (c) 247,120 290,729 1,126,623 478,729 (a) On 24 November 2015 the Group’s shareholding in Thomson Resources Limited (TMZ) decreased to 19.82%. As of this date the investment was accounted for as an available for sale investment (see Note 8). The market value on ASX of Variscan’s 18,100,000 shares in Thomson Resources Limited (TMZ) at 31 December 2015 was $814,500 ($0.045 per share) and on 4 March 2016 it was $724,000 ($0.04 per share). (b) During the period the Group sold 633,308 shares in Aguia Resources Limited (AGR). The market value on ASX of the Group’s remaining 541,692 shares in AGR at 31 December 2015 was $65,003 ($0.12 per share) and on 4 March 2016 it was $54,169 ($0.10 per share). (c) The market value on ASX of the Group’s 14,536,449 shares in Silver City Minerals Limited (SCI) at 31 December 2015 was $247,120 ($0.017 per share) and on 4 March 2016 was $232,583 ($0.016 per share). 8. Investment in associates Investment in TMZ - accounted for as an associate (until 24 November 2015) Investment in EFE - accounted for as an associate 31 Dec 2015 $ 30 Jun 2015 $ - - 792,857 687,143 792,857 687,143 The Group’s interest in the above investments in associates has been brought to account as an investment in an equity accounted associate in accordance with Australian Accounting Standard AASB 128 Investments in Associates as the Directors consider that significant influence exists. 9 > Variscan Mines Limited Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 8. Investment in associates (continued) Thomson Resources Ltd (TMZ) During the period the Group purchased an additional 100,000 shares in TMZ bringing the total shareholding to 18,100,000 shares. On 24 November 2015 the Group’s shareholding decreased to 19.82% (30 June 2015: 21.39%). As of this date the investment was accounted for as an available for sale investment (see Note 7). As a result of the change in accounting treatment, an amount of $900,000 was recognised in the statement of comprehensive income as a gain on disposal of an equity investment. As the investment was previously carried at nil, this amount represents the market value of the investment at the date it ceased to be equity accounted. Eastern Iron Limited (EFE) A gain of $195,322 (30 June 2015: impairment adjustment of $1,033,886) was made to reflect the fair value of the investment on ASX at 31 December 2015 of $792,857. During the period, share of associate net losses totalled $89,608 (30 June 2015: $128,971). As at 31 December 2015 the Group holds a total of 52,857,142 shares in Eastern Iron representing a shareholding of 34.65%. 9. Deferred exploration and evaluation expenditure 31 Dec 2015 $ 30 Jun 2015 $ 2,272,301 918,297 Expenditure incurred during the period 734,504 1,552,423 Expenditure written off during the period (10,947) (198,419) 2,995,858 2,272,301 Costs brought forward Costs carried forward In accordance with Note 2, the Directors write off exploration expenditure where they assess that the asset is impaired. Exploration expenditure is written off either by a reassessment by the Group that has reduced the interpreted potential of the licence for mineral deposits and/or a joint venture partner has withdrawn from a project. 10. Contributed equity 31 Dec 2015 $ 30 Jun 2015 $ 17,241,422 15,646,422 130,655,138 (30 June 2015: 130,655,138) listed options on issue 1,071,184 1,071,184 Share issue costs (369,837) (304,045) 17,942,769 16,413,561 Number $ 175,737,592 14,756,951 Share capital 375,749,632 ordinary shares fully paid (30 June 2015 : 306,447,930) (a) Option issue consideration (a) Movements in ordinary shares on issue At 31 December 2014 Shares issued (i) 130,682,738 888,643 Shares issued (ii) 27,600 414 Transfer value from options issue consideration reserve (iii) - 414 306,447,930 15,646,422 At 30 June 2015 Shares issued (iv) 58,695,652 1,350,000 Shares issued (v) 10,606,050 245,000 375,749,632 17,241,422 At 31 December 2015 10 > Variscan Mines Limited Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 10. Contributed equity (continued) (i) The Company issued 130,682,738 shares at $0.015 per share in May 2015 under a pro-rata renounceable Entitlement Offer. The shares were issued with a one for one attaching listed option. These options were valued at a total of $1,071,598 leaving a value of $888,643 to be allocated to the share capital value. (ii) A total of 27,600 shares were issued on exercise of $0.015 listed options. The options were granted as per the Entitlement Offer mentioned in (i) above. (iii) Transfer the value of the options exercised in (ii) from the options issue consideration reserve to share capital. (iv) The Company issued 58,695,652 shares at $0.023 per share in December 2015 in a placement. (v) The Company issued 10,606,050 shares at $0.0231 per share in December 2015 under a Share Purchase Plan announced on 25 November 2015. 11. Reserves 31 Dec 2015 $ 30 Jun 2015 $ Share-based compensation reserve (a) 265,670 669,250 Investment revaluation reserve (b) - 98,700 Foreign currency translation reserve (c) 339,711 289,041 605,381 1,056,991 (a) The share-based compensation reserve is used to recognise the fair value of options issued but not exercised. The movement during the period is as follows: 31 Dec 2015 30 Jun 2015 $ $ Balance at beginning of period 669,250 1,222,877 Share-based payment 123,255 142,415 Transfer expired options to Retained Earnings (526,835) (696,042) Balance at end of period 265,670 669,250 (b) The investment revaluation reserve arises in connection with the accounting for investments. (c) The foreign currency translation reserve arises from the translation of foreign currency subsidiaries. 12. Loss per share 31 Dec 2015 31 Dec 2014 $ $ (731,677) (2,685,380) Number Number 316,154,646 175,737,592 Cents per share Cents per share Basic (loss) per share (0.23) (1.53) Diluted (loss) per share (0.23) (1.53) Net (loss) used in calculating basic and diluted gain per share Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS The number of potential ordinary shares that are dilutive and included in determining diluted EPS are nil (2014: nil) relating to share options issued. There are no instruments excluded from the calculation of diluted earnings per share that could potentially dilute basic earnings per share in the future because they are antidilutive for all of the periods presented. Conversion, call, subscription or issue after 31 December 2015: Since the end of the financial half year there have been no other conversions to, call of, or subscriptions for ordinary shares or issues of potential ordinary shares since the reporting date and before the completion of these financial statements. 11 > Variscan Mines Limited Notes to the Consolidated Financial Statements For the half year ended 31 December 2015 13. Related party disclosures Subsidiaries The consolidated financial statements include the financial statements of Variscan Mines Limited (the Parent Entity) and the following subsidiaries: % Equity interest $ Investment Country of incorporation 31 Dec 2015 30 Jun 2015 Bluestone 23 Pty Ltd Australia 100 100 5,000 5,000 Variscan Mine SAS France 100 100 2,461,379 2,461,379 Platsearch Australia Pty Ltd Australia 100 100 5 5 Name 31 Dec 2015 30 Jun 2015 Transactions with Directors The Company has an agreement with Luminor Capital Pte Ltd which is entitled to a cash fee of 6% of equity funds raised by Luminor Capital and other parties. Mr Kwan and Dr Foo, Directors of Variscan, have an interest in and are directors of Luminor Capital. No fees have been paid to date. Variscan Mines SAS signed an agreement in January 2013 with E-Mines of which Michel Bonnemaison is a Director. The agreement is for E-Mines to provide geological services, sample preparation and analytical services to Variscan Mines SAS. A total of $254,013 was paid to E-Mines during the peri