Osmond Resources targets strategic acquisition of Orion EU critical minerals project in southern Spain

Osmond Resources (ASX: OSM) is set to acquire a major interest in a significant critical minerals project on the doorstep of the large European electric vehicle market.

The company has reached an agreement to undertake a staged acquisition of the Orion EU rutile, zircon and rare earth project via the purchase of up to an 80% interest in Iberian Critical Minerals (ICM).

ICM indirectly holds a 51% interest in the capital of Orion EU owner Green Mineral Resources (GMR), with the right to increase its interest to at least 90% upon completion of a JORC-compliant scoping study.

Extensive system

The Orion EU project is located in southern Spain and includes 288 mining units covering an area of 86 square kilometres.

Previous exploration has identified a system with various layers rich in critical minerals including rutile (titanium oxide), zircon, hafnium and light and heavy rare earths, with the area also hosting an historic galena mine.

Three initial target areas have been identified, with exploration activities to date focused across a wide area of the Avellanar target.

Previous campaign

A previous sampling campaign was undertaken, followed by channel bulk sampling that covered the entire 2km outcropping layer.

GMR completed two rounds of modern exploration activities in the Avellanar Zone, with 16 rock chip samples collected.

Three bulk channel samples weighing a total of 150kg were collected across the complete layer thickness.

Fast-tracked exploration

Upon final permit award, the company intends to quickly commence a modest drilling program to help confirm continuity of the mineralisation between outcrops.

If successful, the company will seek to fast-track development activities initially focused on a mineral resource estimate to support a scoping study.

Metallurgical test work is already advanced through the 150kg bulk sample and the relatively homogeneous nature of the material across the three outcrops.

Total heavy metals over 30% were identified in two of the samples, with the third returning 28%.

Share placement plan

Osmond said it plans to undertake a placement of 10 million shares at $0.07 each to help support the acquisition.

It also reported it is adding experienced mining executive Anthony Hall to replace Andrew Shearer as managing director and chief executive officer.

The company has also appointed global industrial minerals expert and corporate finance specialist Tolga Kumova as a strategic advisor.