Evolution Mining Ltd. has agreed to acquire 100 per cent of Carnaby Resources at a deal valued at approximately AU$213 million, in a move to build its portfolio of gold and copper assets.
Under the terms of the transaction, Carnaby shareholders will receive 0.0682 new Evolution shares for every Carnaby share held, implying a value of 77.2 cents per share.
The acquisition secures Carnaby’s Greater Duchess copper-hold Project, located near Mount Isa in North West Queensland.
The project holds a mineral resource estimate of 29 million tonnes at 1.5 per cent copper equivalent, offering high-grade feed that Evolution plans to process at its nearby Ernest Henry Operations.
By integrating Greater Duchess with Ernest Henry, Evolution aims to leverage latent mill capacity and existing infrastructure to generate approximately 10,000 tonnes per annum of additional copper production while optimizing operational costs.
The Carnaby board has unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an independent expert’s evaluation.
Carnaby directors, who collectively hold approximately 7.3 per cent of issued shares, have confirmed their intention to vote in favour of the takeover.
Carnaby Managing Director Rob Watkins said the transaction delivers compelling value while de-risking project execution.
“After carefully assessing the alternatives, including a standalone development scenario, the Carnaby board has determined the Evolution proposal represents the most compelling risk-adjusted value for Carnaby shareholders,” Watkins said.
Evolution CEO Lawrie Conway noted the strategic fit within the Cloncurry region.
“The close proximity of Greater Duchess provides an opportunity to increase copper production at Ernest Henry, utilising latent mill capacity and existing infrastructure,” Conway said.
“Combining Carnaby’s Greater Duchess and prospective tenement package, together with Evolution’s established operating presence in North West Queensland provides regional consolidation and has the potential to unlock value for both Carnaby and Evolution shareholders.”
The deal is subject to shareholder and regulatory approval. A shareholders meeting will be held in late October or early November, with implementation targeted for mid-November.