Mont Royal Resources and Commerce Resources complete merger to advance Ashram rare earth project in Québec

Mont Royal Resources Limited (ASX: MRZ) has successfully completed its merger with Canada-based Commerce Resources Corp, creating a dual-listed critical minerals company with a sharpened focus on rare earths development. The deal, finalized on October 21, 2025, brings 100% ownership of the Ashram Rare Earth and Fluorspar Project in Québec under the Mont Royal Resources umbrella, positioning the Australian-listed firm to accelerate the project’s development at a time of heightened geopolitical urgency around rare earth independence in the West.

Mont Royal Resources, which had previously been focused on lithium exploration in the Upper Eastmain Greenstone Belt, is now shifting its strategic focus following this acquisition, leveraging the Ashram Project’s advanced technical profile, location advantages, and existing investment base to build out a new North American supply chain for magnet metals.

What was the rationale behind Mont Royal Resources’ merger with Commerce Resources and how does it reposition the company?

The transaction was executed via a Canadian statutory plan of arrangement and included an exchange ratio of 2.3271 Mont Royal Resources shares for each Commerce Resources share, followed by a capital consolidation at a 0.2195-for-1 ratio. The merger gives Mont Royal Resources full control over the Ashram Rare Earth and Fluorspar Project, which is among the largest monazite-hosted rare earth elements (REE) deposits in North America.

Ashram is a high-grade, carbonatite-hosted deposit located in Nunavik, Québec, with significant potential for strategic supply into electric vehicle and renewable energy markets. More than A$50 million has already been invested into the project, with resource drilling, metallurgical testing, and economic studies well advanced. The deposit holds a Mineral Resource Estimate of 73.2 million tonnes indicated at 1.89% Total Rare Earth Oxide (TREO) and 6.6% fluorspar, plus an inferred resource of 131.1 million tonnes at 1.91% TREO and 4.0% fluorspar, all using a base cut-off of C$287 per tonne.

The Ashram Project also features a high proportion of Neodymium and Praseodymium (NdPr), essential elements for permanent magnets used in EV motors and wind turbines, with NdPr content of over 21% of the TREO in both indicated and inferred categories. The deposit’s metallurgy is favourable, with a simple flotation process producing a 35%+ TREO concentrate at 65% recovery and downstream hydrometallurgical recovery rates exceeding 90% for light rare earths.

What strategic advantage does Ashram offer in the current rare earth supply chain environment?

The timing of this transaction reflects intensifying demand for diversified and secure rare earth supply outside of China, which currently dominates global processing capacity. The Ashram Project’s scale, advanced development status, and strategic Canadian location make it one of the most compelling near-term Western supply opportunities.

With access to Québec’s supportive regulatory framework and infrastructure network, including proximity to rail and hydroelectric power, Mont Royal Resources is well-placed to leverage both government incentives and downstream partnerships. The company is progressing a staged development strategy, beginning with high-grade concentrate production (Stage 1), followed by potential hydrometallurgical and oxide separation capabilities in later stages (Stage 2+), subject to financing and offtake discussions.

The inclusion of a fluorspar by-product stream also differentiates Ashram. Fluorspar is used in multiple industrial applications such as aluminium smelting, steel production, uranium enrichment, and refrigerant manufacturing, and is increasingly being recognised as a strategic mineral in North American policy frameworks.

How has Mont Royal Resources strengthened its leadership and capital structure following the merger?

The board and executive reshuffle reflects a pivot toward deep rare earths and project development experience. Nicholas Holthouse, former CEO of Commerce Resources and previously with Hastings Technology Metals and Meteoric Resources, is now the Managing Director and CEO of Mont Royal Resources. Cameron Henry, founder of Primero Group and Managing Director of Green Technology Metals, joins as non-executive Chairman, while other directors include seasoned executives with backgrounds at Pilbara Minerals, BHP, Fortescue Metals Group, and Champion Iron.

Peter Ruse, former Executive Director of Mont Royal Resources, has transitioned to Head of Corporate Development, while Cindy Valence, with two decades of ESG and stakeholder experience, is appointed as VP of Government Affairs and Sustainability. Key technical and metallurgical expertise has also been retained, including Darren L. Smith as Technical Advisor and Gavin Beer as Consulting Metallurgist.

To support the restructured company, Mont Royal Resources completed a capital raise of A$10 million through the issue of 50 million shares at A$0.20 each on a post-consolidation basis. The pro forma capital structure now includes 188.7 million shares on issue, 92 million options, and 12.2 million performance rights, providing a strong base for funding feasibility work, government grant applications, and investor engagement.

What does the dual listing on the ASX and TSXV mean for shareholders and market visibility?

Mont Royal Resources will retain its primary listing on the Australian Securities Exchange under the ticker MRZ, and will soon begin trading on the TSX Venture Exchange under the ticker MRZL. This dual listing structure is designed to provide enhanced access to both Australian and North American capital markets, which are increasingly active in the critical minerals space.

Commerce Resources shares are expected to be delisted from the TSXV by October 30, 2025. Shareholders of Commerce are being advised to complete the required documentation to receive their new Mont Royal Resources shares, while those holding shares through intermediaries are being directed to contact their brokers for processing.

How are institutional investors and analysts responding to Mont Royal’s post-merger strategy?

The A$10 million capital raise was described by the company as “strongly supported” and “heavily oversubscribed,” indicating healthy institutional appetite. While no analyst reports have been formally cited, indirect sentiment suggests that Mont Royal Resources’ repositioning is aligned with broader investor interest in non-Chinese rare earth development.

The reconstitution of the board and inclusion of executives with successful track records in project financing, downstream negotiations, and ESG strategy has added further credibility to the story. Investors will be closely watching the forthcoming Preliminary Economic Assessment and pre-feasibility milestones, as well as potential offtake announcements and government partnership developments.

The market perception of Mont Royal Resources now reflects a pivot from a junior explorer to a pre-development stage critical minerals developer with institutional backing and dual-market credibility.

What happens next for Mont Royal Resources and the Ashram Project?

Mont Royal Resources is preparing to release an updated Preliminary Economic Assessment for Ashram, which will form the foundation for advancing toward a Pre-Feasibility Study. This PEA is expected to include revised capital and operating cost estimates, updated metallurgical flow sheets, and potential value streams from the fluorspar by-product.

Parallel efforts are also underway to engage strategic partners, pursue grant opportunities within Canadian critical minerals frameworks, and initiate environmental and permitting consultations with local and Indigenous communities.

In parallel, the company continues to hold a 75% interest in the Northern Lights Lithium and precious/base metals tenement package in Québec’s Upper Eastmain Greenstone Belt. However, the decision to drop the Wapatik Gold-Copper Project and the forward narrative of Mont Royal suggests a clear pivot away from diversified exploration toward a single-asset critical minerals development model.

What are the key takeaways from Mont Royal Resources’ post-merger strategy and Ashram rare earths push?

• Mont Royal Resources Limited (ASX: MRZ) has completed its all-share merger with Commerce Resources Corp, consolidating 100% ownership of the Ashram Rare Earth and Fluorspar Project in Québec.
• The Ashram Project is one of the largest undeveloped monazite-hosted rare earth deposits in North America, with over 204 million tonnes of resources and high NdPr content (~21% of TREO).
• A$50 million has already been invested in Ashram, which has undergone drilling, flotation tests, and initial development studies, supporting a low-risk, staged production plan.
• Mont Royal Resources has restructured its board with rare earth industry veterans including Nicholas Holthouse as CEO and Cameron Henry as Chairman, bringing technical and commercial depth.
• The firm raised A$10 million through an oversubscribed equity round to fund development, support dual listing, and prepare for a revised Preliminary Economic Assessment and Pre-Feasibility Study.
• The company will retain its ASX listing under MRZ and begin trading on the TSX Venture Exchange under MRZL, enhancing investor access across Australian and North American markets.
• Institutional sentiment is constructive, driven by global momentum toward diversifying rare earths supply chains outside China and the strategic location of Ashram in Canada.
• Mont Royal’s focus will now shift toward project de-risking, government funding applications, downstream partnerships, and advancing the fluorspar by-product opportunity.
• Alongside Ashram, Mont Royal still holds a 75% interest in the Northern Lights Minerals Project, but has exited the Wapatik Gold-Copper option as it refocuses on rare earths and critical minerals.
• Key upcoming catalysts include the release of the updated PEA, initiation of Pre-Feasibility Study activities, and strategic engagement with offtake partners and government stakeholders.