Evolution to Acquire Carnaby Resources in $149M Deal
Evolution Mining has agreed to acquire Carnaby Resources in an all-stock deal valued at about A$213 million ($149 million). This would give Evolution control over the Greater Duchess copper-gold project, which hosts multiple deposits and is considered one of Australia's emerging copper-gold projects.
The acquisition will provide Evolution with a pipeline of high-grade copper-gold ore for its Ernest Henry mine, boosting annual copper production by about 10,000 tonnes. The deal also eliminates the need for Carnaby to pay processing tolls to Glencore at Ernest Henry.
Carnaby shareholders will receive 0.0682 new Evolution shares for each Carnaby share held, representing a 61% premium to Friday's closing price. Evolution CEO Lawrie Conway said that combining Carnaby's Greater Duchess and prospective tenement package with Evolution's established operating presence in North West Queensland provides regional consolidation and potential value.