Evolution Mining Snaps Up Carnaby Resources for A$213 Million
Evolution Mining (ASX:EVN) has agreed to acquire Carnaby Resources (ASX:CNB) in an all-scrip deal valued at approximately A$213 million. The transaction, announced on July 27, is aimed at feeding the Ernest Henry copper-gold operation, one of Evolution's most valuable assets.
The logic behind the acquisition is geographic as well as financial, with Carnaby's Greater Duchess project sitting near Ernest Henry and able to truck ore to its existing plant. The working thesis is that this will allow Evolution to add growth without the capital drag of a standalone development.
Carnaby shareholders will receive 0.0682 Evolution shares for every Carnaby share held, implying a value of about A$0.772 per Carnaby share. This represents a premium of around 60% above Carnaby's last closing price and 31% above the 30-day volume-weighted average price.
Evolution has a strong financial position to fund the deal, with record group cash flow of A$1,389 million in FY26 and no debt repayments due until FY29. The acquisition will allow Evolution to deepen its copper optionality and further consolidate its position in the Cloncurry region.