Australian Mines is raising more than $7 million to advance its Sconi cobalt-nickel project in North Queensland.

The company has about $3.7 million committed through an insitutional placement and is conducting an entitlement offer for a further $3.7 million.

“Over the coming months, the funds will be applied to project financing activities, to bolster the management team and exploration outside the Sconi project’s current ore reserve and mineral resource as we progress the project toward development,” Australian Mines executive director and interim chief executive officer Les Guthrie said.

Mr Guthrie was appointed as interim CEO this month. Meanwhile Benjamin Bell resigned as a director of the company.

It came after the Australian Securities and Investments Commission (ASIC) commenced civil penalty proceedings against the company for allegedly breaching its continuous disclosure obligations and against Mr Bell for allegedly breaching his directors’ duties.

Related: ASIC legal action against Australian Mines

The company has stated that it intends to defend the proceedings.

In announcing the leadership change, Australan Mines said Mr Bell had been assigned a new role, which included assisting with the transition to the incoming chief executive officer.