- Commerce Resources Corp. (TSXV:CCE) and Mont Royal Resources (ASX:MRZ) to merge, forming a Québec-focused critical minerals developer.
- Commerce shareholders to receive 2.3271 Mont Royal shares per Commerce share, valuing Commerce at C$17.2 million, a 55% premium.
- The transaction aims for a dual listing on TSXV and ASX, with Commerce shareholders owning approximately 85.3% of the combined entity.
Commerce Resources Corp. (TSXV:CCE) is set to merge with Mont Royal Resources (ASX:MRZ) under a definitive arrangement agreement aiming to establish a critical minerals development company focused on Québec. In this merger, Commerce's existing projects, including the Ashram Rare Earths and Fluorspar Project and the Eldor Niobium Project, will combine with Mont Royal's Northern Lights Lithium Project.
Commerce shareholders will receive 2.3271 shares of Mont Royal for each Commerce share they hold, valuing Commerce at approximately C$17.2 million. This conversion reflects a 55% premium over Commerce's last closing share price, with shareholders projected to possess about 85.3% of the newly formed company.
The merged entity will seek a dual listing on both the TSX Venture Exchange and the Australian Securities Exchange, intending to boost liquidity and access to capital. In support of this transaction, Mont Royal plans to raise A$10.0 million through an equity offering, while Commerce will secure C$2.2 million via convertible note financing. These funds will support the advancement of key exploratory projects and provide essential working capital.
The merger is anticipated to complete by July 2025, pending regulatory and shareholder approvals. This strategic consolidation will enhance both companies' project development capabilities, aiming to bolster shareholder value and operational efficiency in the critical minerals market.
