Osmond Resources (ASX:OSM) said ongoing metallurgical tests at the Orion EU critical minerals project in Spain are planned to consider recoveries of rare earth oxides, according to a Wednesday Australian bourse filing.

Bulk sample results indicate the Orion Project has relatively high grades of six rare earth oxides.

The firm also agreed to allot 500,000 shares in the firm to support the acquisition by Iberian Critical Minerals of 50% of the remaining third-party interest in the project not controlled by Iberian.

The 50% stake translates to 5% of the shares in the holding company that owns the project, following the completion of a scoping study. Osmond's staged acquisition of Iberian remains subject to permit award.

Osmond Resources' shares rose over 6% in recent trading on Wednesday.