Osmond Confirms Permit Award - Maiden Drilling to Commence this Quarter

Osmond Resources ASX.OSM

HIGHLIGHTS

• Orión Investigation Permit awarded
  
  
• Acquisition of 80% of Iberian Critical Minerals Pty Ltd to be completed
  
  
• Maiden drilling program to commence in current Quarter

________________

Osmond Resources Limited (ASX: OSM) (Osmond or the Company) is pleased to confirm the award of the Orión Investigation Permit (registration number 16271). The permit covers 85.6km² of the Orión EU Critical Minerals Project which was recently expanded to include an additional three investigation permits (Menodice, Menipe and Metioque), covering an additional 142km², that are in application.

Figure 1 – Map showing the Orión EU Critical Minerals Project and the Orión Permit

The acquisition of 80% of Iberian Critical Minerals Pty Ltd will be completed over the coming week. This entity owns 100% of Spanish private company Omnis Mineria SL. Omnis Mineria SL owns 75.5% of the Orión EU Critical Minerals Project with the right to move to 95% on completion of a Scoping Study. The final 5% requires pro rata capital contributions post the Scoping Study or may be traded for a project royalty which can be purchased at any time for US$750k.

Under the terms of the acquisition, the Company must issue an initial 25m ordinary shares for the 80% interest. There are an additional two tranches of shares totalling 85m shares (42.5m each) that can be issued by the Company when the following milestones are triggered if it wishes to continue to progress the Project. Importantly the Company has full discretion with respect to the issue of the two tranches.

Milestone 1 – 30 days from the earlier of OSM announcing a Mineral Resource Estimate to the ASX with a component of Indicated Resource or 24 months from the date of completion of the initial acquisition; and

Milestone 2 – 30 days from the earlier of OSM announcing a Scoping Study to the ASX or 48 months from the date of completion of the initial acquisition.

The Company expects to commence the initial drilling program of 15 drill holes in the current Quarter. Drill hole locations are shown in Figure 1 and cover a wide area of the permit.

Link to ASX Release:  https://bit.ly/3IQeAcu

-Ends-

Media and Investors, contact:

Anthony Hall | Managing Director and CEO
[email protected]
+61 417 466 039

Elvis Jurcevic | Investor Relations
[email protected]
+61 408 268 271