Mont Royal hits ground running with REE prize in sight after relisting

Special Report: Mont Royal Resources has relisted on the ASX after completing a merger with Canada’s Commerce Resources that grants it the Ashram rare earths and fluorspar deposit in Québec.

The company’s re-entry offers Australian investors the opportunity to gain exposure to one of North America’s largest monazite-dominant, carbonatite-hosted rare earth element deposits.

Ashram currently has an indicated non-JORC 43-101 resource of 73.2Mt grading 1.89% total rare earth oxides and 6.6% fluorspar (CaF2) and a further inferred resource of 131.1Mt at 1.91% TREO and 4% CaF2.

The advanced project has already seen significant development work completed and over $50m invested historically.

Its acquisition gives Mont Royal Resources (ASX:MRZ) a compelling opportunity to establish a new source of North American rare earths supply at a time of growing demand and strategic interest in establishing new Western supply sources.

The company is also well funded to progress Ashram, having tucked some $10m away in its war chest after completing a recent capital raising to fund project development and strategic engagement activities.

A further C$2.6m ($2.84m) is expected to be received before the end of 2025 has the Canadian exploration tax rebate for FY2025 due to Commerce Resources.

Managing director Nicholas Holthouse – the former chief executive officer of Meteoric Resources – says the relisting marks a landmark day for the company after completing a six-month transaction.

“Ashram is a globally significant rare earth asset with the potential to become a cornerstone of North America’s critical minerals supply chain,” he added.

“It has been largely forgotten over the past 15 years, despite its Tier-1 scale, excellent mineralogy and strategic importance.

“This transaction brings the project into the spotlight, in the hands of a newly established, development-focused and highly experienced leadership team.

“With a strong balance sheet, Mont Royal has the people, the resources and the vision to awaken this sleeping giant and develop a major new Canadian rare earths project at a time of growing need for new, Western supply sources of the rare earths required to power high-tech industries and the global energy transition.”

Watch: Merger unlocks major rare earths opportunity in Canada

Ashram project

The Ashram project is a single mineralised body that outcrops at surface and has a drill delineated footprint of over 700m along strike, 300m across and 600m deep.

Besides its REE potential near the US, which is keen to secure supplies of the critical minerals from domestic and allied sources, the project also has plenty of high-value fluorspar as a potential byproduct.

Fluorspar is used in the manufacture of aluminium, gasoline, and uranium fuel. It is also used for making ceramics, glass and specialised optical lenses as well as renewable energy applications.

Importantly, Ashram has a high distribution of valuable magnet rare earths – neodymium and praseodymium (21.1% of the indicated and 21.4% of the inferred resource).

The project has excellent mineralogy, with simple flotation producing a +35% TREO concentrate with 65% recovery.

Hydrometallurgical recoveries of 95% have been achieved for light rare earth elements and 82% for heavy rare earth elements.

Forward program

MRZ will start work immediately on an updated preliminary economic assessment – essentially a scoping study – focused on a streamlined development strategy.

It will pursue a lower-risk staged development plan with the first stage seeing it focus on mining, beneficiation and production of a high-grade flotation concentrate.

Stage two will see the company consider potential downstream development in hydrometallurgy, oxide separation and collaboration with industry partners to produce separated oxides, metals and magnets.

This article was developed in collaboration with Mont Royal Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.