Mont Royal Resources (ASX: MRZ) has signed a non-binding memorandum of understanding (MOU) with the Saguenay Port Authority to support development planning for its Ashram rare earth project in Québec.
The agreement establishes a framework for co-operation around logistics, processing location, and infrastructure access as Mont Royal refines its development strategy for Ashram.
Mont Royal said the MOU aligns with its focus on reducing technical risk and capital intensity by relocating downstream processing away from site where possible.
The company said the Port of Saguenay offers a strategically positioned logistics hub capable of supporting both inbound concentrate handling and outbound shipment of refined rare earth products to global markets.
Year-Round Deep-Water Port
The Port of Saguenay is located in the Saguenay–Lac-Saint-Jean industrial region of north-eastern Canada and operates as a year-round deep-water port with integrated rail and road access.
The port precinct offers established infrastructure including reticulated power, water and gas services, permitted process water discharge points, and direct access to transport corridors.
As part of the agreement, Mont Royal will conduct technical, regulatory, and commercial evaluations to assess the merits of locating a hydrometallurgical processing facility within the port’s industrial zone.
Mont Royal said the region’s existing mining and processing operations provide access to a skilled workforce and mature service industry that could support project execution.
Ashram Development Strategy
Mont Royal is evaluating a development pathway that would see rare earth concentrates produced at Ashram and transported to Saguenay for further processing and value-adding.
Relocating the hydrometallurgical component of the Ashram flowsheet away from site has the potential to materially reduce project complexity and upfront capital requirements.
“We see great opportunity in moving the more complex Hydromet portion of the Ashram flowsheet away from site and relocating it to Saguenay, an area which offers ready access to port, rail, power, gas, service industries and a skilled workforce.”
“The Port of Saguenay and its associated industrial-port zone complement the project’s new development strategy, which is focused where possible on reducing technical risk and CapEx,” managing director Nicholas Holthouse said.
“Mont Royal remains committed to undertaking as much value-adding to our rare earth products within Quebec and Canada as possible and industrial complexes such as Saguenay support this vision.”
Value-Adding with Flexibility
Mont Royal said this approach supports its objective of maximising value-adding within Québec and Canada, while maintaining flexibility as engineering and economic studies progress.
The MOU further aligns with broader Canadian initiatives aimed at building integrated critical minerals supply chains from extraction through to processing and export.
Mont Royal noted that the Port of Saguenay has been identified in Canadian federal planning as a key logistics corridor for northern Québec and critical minerals development.
The company believes the MOU represents an important step in advancing Ashram toward development while continuing technical studies to refine its preferred processing and logistics configuration.
