Evolution Mining has announced its acquisition of Carnaby Resources, with the deal valued at approximately $213 million and structured as a Scheme of Arrangement. Under the agreement, Carnaby shareholders will receive 0.0682 Evolution shares for each Carnaby share held, implying an offer price of $0.77 per share. The acquisition brings Greater Duchess, an advanced copper-gold project currently at the Pre-Feasibility Study stage, into Evolution’s portfolio and positions the company to accelerate its copper growth strategy in Queensland’s Cloncurry district.
The transaction represents a strategic expansion of Evolution’s regional footprint rather than a diversification into new territory. Located in close proximity to Evolution’s established Ernest Henry Operations, Greater Duchess sits within the highly prospective North West Queensland copper-gold district, allowing the company to leverage existing infrastructure and processing capacity. The scheme has been unanimously recommended by the Carnaby Board and has secured support from Carnaby’s directors, who collectively hold 7.3% of the company and have committed to voting in favor of the arrangement, subject to an independent expert concluding that the scheme is in shareholders’ best interests.
Greater Duchess carries a Mineral Resource Estimate of 29.2 million tonnes at 1.3% copper and 0.2 grams per tonne gold, with an Ore Reserve Estimate of 8.4 million tonnes at 1.7% copper and 0.3 grams per tonne gold. The project is expected to deliver approximately 10,000 tonnes per annum of additional copper production once integrated with Ernest Henry, significantly improving the operation’s cost profile and asset utilization. The acquisition aligns with Evolution’s stated strategy of building a portfolio of high-quality, long-life assets in tier-1 jurisdictions and adds scale and optionality across production, development and exploration activity in the region. The enlarged tenement package following the transaction also creates multiple priority exploration targets near Ernest Henry, potentially unlocking additional value beyond the immediate Greater Duchess development.
The timing of this acquisition supports Evolution’s current Bert expansion project at Ernest Henry, which is already in execution. By acquiring Greater Duchess and its associated ore resource, Evolution can utilize latent mill capacity at Ernest Henry while maintaining a tight operational and capital discipline. The copper focus reflects broader market dynamics favoring exposure to the red metal, particularly through assets in stable jurisdictions with established operating infrastructure.
Investors should monitor the progression toward shareholder meetings at both companies, the independent expert’s assessment, and any regulatory approvals required for completion. The exchange ratio of 0.0682 shares per Carnaby share means Evolution shareholders will see some dilution, though the company’s strategy of growing copper production from a known, proximate asset base addresses a clear operational opportunity. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Evolution Mining Limited (ASX: EVN)
Evolution Mining Limited is an Australia-based gold mining company that engages in the exploration, mine development, operation, and sale of gold and gold-copper concentrates. The company operates six mines located in Australia and Canada, including assets in New South Wales, Queensland, Western Australia, and Ontario. It also explores for copper and silver deposits.
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