Osmond Resources Wins Maximum Spanish €250K Grant as Orión Drilling Begins

Osmond Resources secures maximum Spanish government grant as Orión drilling gets underway

Osmond Resources (ASX: OSM) has confirmed three simultaneous milestones: a €250,000 provisional grant from Spain’s Ministry for Ecological Transition and Demographic Challenge (MITERD), a 13-hole drill program set to commence at the Orión project in the coming days, and the completion of the final share issuance for its 80% interest in Iberian Critical Minerals. The company’s stated objective is to become the EU’s first producer of rare earth, titanium and zirconium minerals.

The €250,000 grant represents the maximum single award from the first round of Spain’s Programa Nacional de Exploración Minera 2026–2030, issued under MITERD Orden TED/352/2026 of 24 March 2026. A total of nine projects shared €1,582,580 in that round. OSM received the maximum. A second drill rig is expected on-site during the week commencing 12 October 2026, and 85 million ordinary shares have been issued to the vendor group, completing Stages 2 and 3 of the acquisition (42.5 million + 42.5 million shares).

What the Programa Nacional de Exploración Minera means for OSM

The Programa Nacional de Exploración Minera 2026–2030 is a Spanish government initiative administered by MITERD, designed to expand knowledge of Spain’s mineral resources. Its focus is specifically on raw materials essential for the energy and digital transitions, and on recovering minerals from mining waste. The program was approved on 10 March 2026 and carries an estimated budget of €182 million for the five-year period from 2026 to 2030.

In the first round, established under MITERD Orden TED/352/2026 of 24 March 2026, nine projects shared €1,582,580 in provisional grants. OSM’s Orión project received €250,000, the maximum awarded to any single project in the round. Funds are expected to be distributed over the coming months.

For retail investors, three reasons explain why this grant matters:

1. Non-dilutive funding: The grant provides non-dilutive funding to support the project’s exploration activities.
2. Government validation: Receiving the maximum award signals official recognition of Orión’s strategic importance under Spain’s critical minerals agenda.
3. Future rounds: The 2026–2030 program structure opens the door for additional applications across the program’s remaining budget.

Orión drill program and project fundamentals

13-hole program targeting MRE expansion

The planned 13-hole drill program is primarily designed to test areas outside the existing Mineral Resource Estimate (MRE) boundary. Any success is expected to lead to a larger MRE with greater confidence levels, with the goal of lifting the resource toward Measured and Indicated categories.

The current MRE stands at 60.0Mt @ 9.39% TiO₂, 3.06% ZrO₂, 624ppm HfO₂ and 6,274ppm TREO, with 15.3Mt (25%) already classified in the Measured and Indicated categories. Critically, that existing MRE covers only approximately 3.4% of OSM’s approximately 232 km² tenure, which illustrates the scale of potential resource upside that additional drilling could reveal.

The maiden JORC resource confirmed 60.0 Mt at 9.39% TiO2 across a footprint of just 7.9 km2, with a 10 km mineralised corridor already established as the structural framework for the expansion drilling now underway.

Scoping study snapshot — why the economics matter

To appreciate what a successful MRE expansion could support, the Scoping Study released on 2 October 2026 (ASX release) provides important context. The study is presented on a 100% project basis; OSM holds a 76% beneficial interest (80% of 95%). Key financial metrics from the study are set out below.

Source: ASX release dated 2 October 2026. Figures presented on a 100% project basis. OSM holds a 76% beneficial interest (80% of 95%).

These metrics are scoping-level estimates, subject to the inherent uncertainties of an early-stage study, and should be read alongside the full assumptions disclosed in the Scoping Study release.

For investors wanting to stress-test the financial assumptions behind the headline numbers, our deep-dive into the Orión Scoping Study examines the negative C1 cash cost position, the by-product revenue structure, and how Module 1 maps against the EU Critical Raw Materials Act’s binding 2030 extraction benchmarks.

Acquisition structure completed and Q4 priorities in focus

80% interest in Iberian Critical Minerals formally secured

OSM originally announced the three-stage acquisition of 80% of Iberian Critical Minerals Pty Ltd on 6 September 2024. Iberian Critical Minerals in turn owns 95% of the Orión project, giving OSM a 76% beneficial interest. The independent directors have confirmed the company’s intention to retain the 80% interest, and the final 85 million ordinary shares have now been issued to the vendor group. The three stages of the acquisition were structured as follows:

• Stage 1: 25 million shares issued on 5 August 2025, triggered by completion of legal due diligence, shareholder approval (completed 29 October 2024), and final permit award (completed 29 July 2025)
• Stage 2: 42.5 million shares now issued
• Stage 3: 42.5 million shares now issued (Stages 2 and 3 combined: 85 million shares)

Q4 CY26 priorities

Management has disclosed the following priorities for the balance of calendar year 2026:

1. Complete additional drill holes with a view to upgrading the MRE
2. Subject to drilling success, prepare an updated Scoping Study with an increased mine life
3. Progress the Spanish secondary listing
4. Progress downstream product studies, with a focus on Rare Earth Oxides and Titanium and Zirconium Metal Powder
5. Additional applications for project recognition and support schemes in Andalucía, Spain and the EU

Investment thesis — three catalysts to watch

For investors monitoring OSM, three near-term catalysts are worth tracking closely:

1. Drill results: Any extension of the MRE outside the current boundary represents a direct re-rating catalyst, given the existing resource covers only approximately 3.4% of the total tenure.
2. MRE upgrade: A larger Measured and Indicated resource base would support an updated Scoping Study with an extended mine life, directly de-risking the development pathway.
3. Strategic milestones: Progression of the Spanish secondary listing and downstream product studies is anticipated to broaden OSM’s investor base and commercial optionality.

All three catalysts sit against the backdrop of the EU’s strengthening regulatory support for in-sourcing critical minerals production. OSM’s stated mission remains clear: to deliver the EU’s first rare earth, titanium and zirconium mine.

Ready to Explore the Investment Case Behind Osmond Resources’ Orión Project?

With Spain’s government awarding OSM the maximum €250,000 grant and a 13-hole drill program now underway across a tenure where the current resource covers just 3.4% of available ground, the potential for a significant MRE expansion is a key catalyst to watch. The Scoping Study’s base-case post-tax NPV of US$2.31 billion and a six-month payback period underscore the scale of the opportunity at Orión.

For a deeper look at the project fundamentals, acquisition structure, and Q4 catalysts, visit the Osmond Resources (ASX: OSM) company profile on Discovery Alert to stay across the latest developments as drilling results emerge.