Australian Mines has raised $20 million in a share placement to advance its Sconi cobalt-nickel-scandium project in north Queensland and its Flemington project in New South Wales.

The company is undertaking a bankable feasibility study (BFS), due to ​be completed in April 2018, for the Sconi project.

In support of the BFS, Australian Mines is continuing trial mining and is also constructing a demonstration-size processing plant that will be capable of producing commercial-grade samples of cobalt sulphate, nickel sulphate and scandium oxide.

These samples will be used to progress negotiations with potential off-take partners and financiers.

Australian Mines acquired 100 per cent of the project, near Greenvale west of Townsville, for $10 million cash and shares in a deal with joint venture partner Metallica Minerals in September.

The Sconi project consists of five deposits – Greenvale, Lucknow, Bell Creek, Minnamoolka and Kokomo, with granted mining leases covering all key deposits.