Mont Royal Resources (ASX:MRZ) and TSX Venture Exchange-listed Commerce Resources agreed to merge through a statutory plan of arrangement, with the company acquiring 100% of Commerce Resources' issued and outstanding common shares, according to an April 10 filing with the Australian bourse.

The merger will establish a Canadian critical metals company and is contingent on the company raising AU$8 million to AU$10 million through the issue of shares, the filing said.

The proceeds will fund resource growth and advance the preliminary economic assessment at Commerce Resources' Ashram project and niobium assets and the exploration pipeline at the Northern Lights project, per the filing.