The company’s shares were last trading 37.5% higher intra-day on Wednesday, at $0.011.
Australian Mines will use the funds for the development and operation of a pilot processing plant at the Sconi Scandium-Cobalt Project near Greenvale in Queensland.
An evaluation work is being carried out on the project as part of a definitive feasibility study (DFS), which is currently underway.
A previously completed pre-feasibility study confirmed that the project is capable of producing 50 tonnes of high purity scandium oxide per annum over a 20-year mine life to generate an EBITDA of $59 million per year.
Sconi also benefits from an existing cobalt resource of 89 million tonnes at 0.06% for 54,500 tonnes of contained cobalt, which will be considered as part of mine design being prepared for the DFS.
This resource contains a higher-grade zone of 16.3 million tonnes at 0.12% for 19,500 tonnes of contained cobalt.
The pilot processing operation will also be used to produce samples from Australian Mines’ early-stage Flemington Scandium-Cobalt Project, near Fifield in New South Wales.
The company is acquiring 100% of the Flemington Project, one of the highest-grade scandium deposits in the world, from Jervois Mining (ASX:JRV).