Commerce Resources and Mont Royal Resources Announce Merger Agreement

Commerce Resources Corp. and Mont Royal Resources have entered into an arrangement agreement, aiming to merge their businesses into a critical minerals development company. The transaction promises to create a Québec-focused explorer combining Commerce's Ashram Rare Earths and Eldor Niobium projects with Mont Royal's Northern Lights Lithium Project.

The merger will facilitate a dual listing on the TSX Venture Exchange and the Australian Securities Exchange, enhancing access to liquidity and funding. Commerce shareholders will receive 2.3271 Mont Royal shares per Commerce share. This represents an equity value of C$17.2 million with a 55% implied premium.

The transaction requires Mont Royal to raise A$10 million to fund project advancements. Additionally, a C$2.2 million convertible note financing will provide interim funding for the Ashram Project's development. The board recommends shareholder approval, citing strategic alignment in boosting resource exploration.