The funding is part of Natural Resources Canada’s (NRCan) Critical Minerals Infrastructure Fund (CMIF) program – and is subject to the completion of due diligence and the execution of a formal agreement.
The funding is critical to facilitating the planning and preconstruction of a road between the Ashram project and Schefferville (300km), via which the company would deliver mixed rare earth concentrates.
From there it’s rail to Sept-Îles and sea or road to the Port of Saguenay under the recently announced MOU for potential hydrometallurgical processing at the Saguenay industrial zone prior to export to global markets.
The road would also provide enhanced access to the Nunavik Region and support multiple projects and indigenous groups in the area.
Mont Royal Resources (ASX:MRZ) says the funding would also be vital to advancing its baseline studies, pre-feasibility study and feasibility study.
The company said that transporting concentrate south to Schefferville and then onto Sept-Îles offers significant advantages in reducing both capex and technical risk along with increased operability by avoiding ice-bound port concepts to the north.
“This funding would be critical in supporting the progression of our road studies, which would be crucial to the development of the Ashram REE and fluorspar project,” MD Nicholas Holthouse said.
“Ashram is the highest quality deposit of its type in Canada and one of the best globally and we are delighted to see such strong Government support for our proposed infrastructure and logistics solution to unlock the enormous value of this deposit on behalf of our shareholders and all stakeholders.
“In addition to bringing this strategically important project into production, a new road would provide significant social and economic benefits to the indigenous communities in Nunavik, as well as other potential exploration and development projects in the district.
“We look forward to working with the government and communities as we progress the Ashram project and seek to deliver this important expansion of Quebec’s Northern Infrastructure.”
Parliamentary Secretary to the Minister of Energy and Natural Resources Claude Guay said the extension is aimed at progressing responsible development forward in Quebec.
“By supporting road studies that improve access to the Nunavik region and connect projects like Ashram to rail and port infrastructure, we are strengthening our regional and national economy and laying the groundwork for the good jobs and long-term opportunities that critical minerals can deliver,” he said.
