Mont Royal’s subsidiary Commerce Resources has secured an extension of conditional funding worth C$2.6 million from the Canadian government to progress critical road infrastructure studies for the Ashram Rare Earths and Fluorspar Project in Quebec.
- C$2.6 million conditional funding extended by Natural Resources Canada
- Funding supports revised Southern Road Access Strategy linking Ashram to Schefferville
- Road access enables transport of rare earth concentrates by road, rail, and sea
- Infrastructure plan aims to reduce capital costs and technical risks
- Project expected to deliver social and economic benefits to Indigenous communities
Government Support for Critical Infrastructure
Mont Royal Resources Ltd, through its wholly owned subsidiary Commerce Resources, has received an extension of conditional funding of up to C$2.6 million from Natural Resources Canada’s Critical Minerals Infrastructure Fund (CMIF). This funding is earmarked to advance road development studies for the Ashram Rare Earths and Fluorspar Project located in Quebec’s Nunavik region. The extension follows the initial conditional approval granted in February 2025 and remains subject to due diligence and formal agreement execution.
A Revised Logistics Strategy
The funding will support the Southern Road Access Strategy, a revised logistics plan that envisages transporting mixed rare earth concentrates by road over 300 kilometres from the Ashram site to the town of Schefferville. From there, rail transport will carry the concentrate to the port city of Sept-Îles. The final leg involves shipping or road transport to the Port of Saguenay, where Mont Royal is exploring hydrometallurgical processing options under a recently announced memorandum of understanding.
This multi-modal transport approach is designed to mitigate capital expenditure and technical risks associated with northern ice-bound ports, streamlining the supply chain and improving operational reliability. The road development is also expected to enhance access to the Nunavik region, benefiting multiple projects and Indigenous communities.
Strategic and Social Implications
Mont Royal’s Managing Director, Nicholas Holthouse, emphasised the importance of government backing for this infrastructure initiative, highlighting Ashram as one of Canada’s highest quality rare earth deposits. He noted that the road would not only unlock the project’s value but also deliver significant social and economic benefits to Indigenous groups in the region.
Government officials echoed this sentiment, with the Honourable Tim Hodgson underscoring Canada’s position as a global mining leader and the strategic importance of critical minerals. Parliamentary Secretary Claude Guay highlighted how improved infrastructure would support responsible development and create long-term economic opportunities in Quebec’s northern communities.
Next Steps and Market Context
The conditional funding is critical for advancing Mont Royal’s baseline, pre-feasibility, and feasibility studies, which will inform the project’s development timeline and investment decisions. As global demand for critical minerals is projected to double by 2040, Canada’s abundant resources and commitment to sustainable mining position projects like Ashram to play a pivotal role in the supply chain for rare earth elements.
Mont Royal’s approach to integrating road, rail, and port logistics reflects a pragmatic strategy to reduce costs and technical challenges while fostering regional development. The company’s progress will be closely watched by investors and stakeholders eager to see how these infrastructure plans translate into operational milestones.
Bottom Line?
Mont Royal’s extended funding marks a crucial step in transforming Ashram’s rare earth potential into tangible economic and social outcomes.
Questions in the middle?
- When will the formal agreement with Natural Resources Canada be finalised?
- What are the timelines for completing the road development and feasibility studies?
- How will Indigenous communities be engaged throughout the infrastructure development?