Osmond Resources has confirmed the award of the Orión Investigation Permit in Spain and is set to begin an initial drilling program this quarter, advancing its EU Critical Minerals Project amid strong regulatory support.
- Orión Investigation Permit awarded covering 85.6 km²
- Acquisition of 80% stake in Iberian Critical Minerals Pty Ltd nearing completion
- Initial drilling program of 15 holes to start in current quarter
- Project targets critical minerals including rutile, zircon, hafnium, and rare earth elements
- Milestone-based share issuances linked to resource and scoping study progress
Permit Award and Strategic Acquisition
Osmond Resources Limited (ASX, OSM) has taken a significant step forward in its European ambitions with the official award of the Orión Investigation Permit. Covering 85.6 square kilometres in southern Spain's Jaén Province, this permit forms the core of Osmond's expanded EU Critical Minerals Project. The company is also finalising the acquisition of an 80% interest in Iberian Critical Minerals Pty Ltd, which holds a controlling stake in the project through its ownership of Omnis Mineria SL.
Advancing Exploration with Drilling
With the permit secured and acquisition imminent, Osmond is poised to commence a maiden drilling campaign comprising 15 drill holes within the current quarter. These drill sites span a broad area of the permit, aiming to confirm the continuity and grade of mineralised layers rich in critical minerals such as rutile, zircon, hafnium, and rare earth elements. The results from this program will be pivotal in underpinning a Mineral Resource Estimate and subsequent Scoping Study, both targeted for completion within 2025.
Strategic Positioning Amid EU Regulatory Support
The timing of Osmond's progress aligns with the European Union's increasing regulatory emphasis on securing domestic sources of critical minerals. The Orión project’s geological profile, featuring siliciclastic systems with high-grade mineral layers, positions Osmond to potentially supply key materials essential for EU industries. The company’s strategy includes leveraging this regulatory environment to fast-track development activities and reduce the EU’s reliance on imports.
Milestone-Linked Funding and Share Issuance
Osmond's acquisition deal includes an initial issue of 25 million ordinary shares for the 80% stake, with two additional tranches of shares (totaling 85 million) contingent on achieving key milestones, announcing a Mineral Resource Estimate with an Indicated Resource component and releasing a Scoping Study. Notably, the company retains discretion over issuing these further shares, providing flexibility in managing dilution and project funding as exploration results unfold.
Broader Project Portfolio and Future Outlook
Beyond Orión, Osmond maintains interests in other Spanish projects, including the Iberian One Project targeting kaolinite and alunite mineralisation, and the Yumbarra Project in South Australia, prospective for uranium and platinum group elements. The company’s focus on critical minerals aligns with global trends emphasizing supply chain security and sustainable sourcing.
Bottom Line?
Osmond’s upcoming drilling results and milestone achievements will be crucial in shaping its role in Europe’s critical minerals landscape.
Questions in the middle?
- What initial assay results will the maiden drilling program yield regarding mineral grades and continuity?
- How will Osmond balance share issuance discretion with the need for capital to advance the project?
- What impact will evolving EU critical minerals policies have on project timelines and funding?