The Evolution Mining Ltd (ASX: EVN) share price is in focus today after announcing the acquisition of Carnaby Resources Ltd (ASX: CNB), expanding its copper growth opportunities at Ernest Henry. The deal, valued at approximately $213 million, will bring the advanced Greater Duchess Project into Evolution's portfolio.
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What did Evolution Mining report?
- Evolution to acquire 100% of Carnaby Resources via a Scheme of Arrangement.
- Carnaby shareholders to receive 0.0682 new Evolution shares for each Carnaby share, with an implied value of $0.77 per Carnaby share.
- The acquisition values Carnaby at roughly $213 million, a 60.4% premium to its prior closing price.
- Greater Duchess Project adds an estimated 10,000 tonnes per annum of copper production potential to Ernest Henry.
- The Scheme is unanimously recommended by Carnaby's Board, in the absence of a superior proposal.
What else do investors need to know?
The acquisition aligns with Evolution Mining's strategy to build a portfolio of high-quality, long-life gold and copper assets in world-class mining regions. By integrating the Greater Duchess Project with Ernest Henry, Evolution aims to boost copper output and leverage its existing infrastructure for cost efficiencies.
Existing tolling and offtake agreements between Carnaby and Glencore will be terminated, clearing the way for integration into Evolution's operations. Any concentrate from Greater Duchess will be sold to Glencore under Evolution's existing Ernest Henry offtake agreement, supporting continued market access.
Regulatory and shareholder approvals will be required before the Scheme can proceed. The process includes key milestones such as a scheme meeting in late October or early November 2026, with completion targeted by mid-November 2026.
What did Evolution Mining management say?
Commenting on the news, Evolution Mining's managing director and CEO, Lawrie Conway, said:
The acquisition of Carnaby represents an exciting opportunity to add the Greater Duchess project to our portfolio and further consolidate our position in the highly prospective 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. The combination of Ernest Henry's Bert project and Greater Duchess enhances our ability to continue to maximise production and growth at Ernest Henry.
What's next for Evolution Mining?
Evolution intends to conduct an updated Feasibility Study for the Greater Duchess Project over the next 12 to 18 months, building on Carnaby's previous work. The goal is to maximise mining and processing efficiencies as Greater Duchess is integrated into Ernest Henry's life-of-mine plan.
Carnaby shareholders will gain exposure to Evolution's diversified portfolio and operational expertise. If all approvals are met, the Scheme is expected to be completed in the second half of 2026, with project development ramping up shortly afterwards.
Evolution Mining Limited share price snapshot
Over the past 12 months, the Evolution Mining Limited share price has smashed the ASX 200 index (ASX: XJO) with a 55% gain. This reflects positive market sentiment towards quality gold and copper exposures.
