Osmond Resources Limited (ASX:OSM) announced on 5 October 2026 three milestones relating to its Orión EU Critical Minerals Project in southern Spain. The company confirmed a provisional grant of €250,000 from Spain's Ministry for the Ecological Transition and the Demographic Challenge (MITERD), the imminent start of a 13-hole drilling program, and the completion of a final share issuance for its 80% interest in the entity that owns 95% of the project.

About Osmond Resources

Osmond Resources Limited is an ASX-listed company focused on developing critical minerals projects in the European Union. It has its head office in Madrid and its registered office in Melbourne. The company controls an 80% interest in Iberian Critical Minerals, which owns 95% of the Orión project, equal to a 76% beneficial interest.

Orión is located in Jaén Province, Andalucía, and includes 772 Spanish Mining units covering about 232 square kilometres. It is a siliciclastic system with layers containing monazite (a rare earth mineral), zircon and rutile (a titanium mineral). The company announced a maiden JORC (2012) Mineral Resource Estimate in September 2026 of 60.0 million tonnes at 9.39% TiO2, 3.06% ZrO2, 624 parts per million HfO2 and 6,274 parts per million total rare earth oxides, of which 15.3 million tonnes are in the Measured and Indicated categories. The estimate covers about 3.4% of the tenure. Osmond also owns 100% of the Iberian One Project in Segovia Province, which aims to exploit kaolinite and alunite, and is considering Options for it.

Latest Development: Grant, Drilling and Share Issuance (5 October 2026)

The €250,000 provisional grant was awarded under Spain's Programa Nacional de Exploración Minera 2026-2030, a program developed by MITERD to expand knowledge of Spain's mineral resources, with a focus on raw materials for the energy and digital transitions and recovery of minerals from mining waste. The program was approved on 10 March 2026 and has an estimated budget of €182 million for private exploration companies over 2026 to 2030. In the first round of provisional grants, made under MITERD Order TED/352/2026 of 24 March 2026, nine projects received a total of €1,582,580, with €250,000 the maximum awarded. Funds are expected to be distributed over the coming months.

Drilling at Orión is expected to start in the coming days, with a second rig due on site in the week beginning 12 October 2026. The 13-hole program is designed primarily to test areas outside the existing Mineral Resource Estimate boundary. The company states that any success is expected to lead to a larger resource estimate with greater confidence.

The final share issuance relates to a three-stage Acquisition of 80% of Iberian Critical Minerals announced on 6 September 2024. Stage 1 was completed in April 2025 and involved 25 million shares. Stages 2 and 3 each involve 42.5 million shares, and the company must either issue them or hand back the 80% interest within set periods. The independent directors have confirmed the intention to retain the 80% interest, and 85 million ordinary shares have been issued to the vendor group in line with the acquisition agreement.

The company also referred to a Scoping Study released on 2 October 2026. On a 100% project basis, the study assumes plant throughput of 2 million tonnes per year, an initial mine life of nine years, initial Capital of US$299 million and a construction period of 24 months. The base case shows a post-tax NPV8 of US$2,309 million and an IRR of 145%, with a spot case of US$3,457 million and an MREO case of US$1,113 million. The study uses price assumptions drawn from Argus and TZMI benchmarks, with further adjustments applied by the company.

For the remainder of calendar 2026, the company lists priorities that include completing additional drill holes to upgrade the resource, preparing an updated Scoping Study with an increased mine life if drilling is successful, progressing a Spanish secondary listing, advancing Downstream product studies for rare earth oxides and titanium and zirconium metal powder, and lodging further applications for project recognition and support in Andalucía, Spain and the European Union.

Risks and Uncertainties

The grant is described as provisional, and the timing of distribution is stated only as over the coming months.

The Scoping Study is a preliminary assessment, and its outcomes depend on assumptions about prices, recoveries and costs. The resource estimate includes a larger Inferred component of 44.7 million tonnes, which carries a lower level of geological confidence.

The company's own forward-looking statement identifies risks including limited operating history in critical minerals extraction, no Revenue from the proposed operations, the need for substantial additional financing and its status as an exploration-stage company dependent on a single project with no JORC-compliant reserves.

Stages 2 and 3 of the acquisition require further share issuances or the return of the 80% interest, and the Spanish secondary listing has not been completed. Drilling results are not yet available.

Milestones to Watch

  • Start of drilling and the arrival of the second rig in the week of 12 October 2026.
  • Drilling results and any resulting update to the Mineral Resource Estimate.
  • An updated Scoping Study with an extended mine life, if the drilling supports it.
  • Receipt of the €250,000 grant funds over the coming months.
  • Progress on the Spanish secondary listing, downstream product studies and further support applications.