Evolution Mining Limited (ASX: EVN) has announced a binding agreement to acquire 100% of Carnaby Resources (ASX: CNB) through a scheme of arrangement. The transaction, valued at approximately $213 million, aims to incorporate the copper-rich Ernest Henry project and the advanced Greater Duchess copper-gold project into the company’s regional production pipeline. Evolution expects this integration to unlock roughly 10ktpa of additional copper production by leveraging existing processing infrastructure and latent mill capacity in North West Queensland.

The deal highlights a strategic push to consolidate assets within the Cloncurry region. By folding Greater Duchess into its operations, Evolution intends to refine the project’s development pathway through an updated feasibility study. This study will focus on optimizing mining and processing efficiencies while further de-risking the mineral inventory through additional exploration drilling.

"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."

"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."

— Lawrie Conway, Managing Director and Chief Executive Officer

As part of the transaction, existing offtake and tolling agreements between Carnaby and Glencore will be terminated. However, future concentrate produced from the newly acquired project will be sold to Glencore under Evolution’s current Ernest Henry arrangements, ensuring continuity in the supply chain.

The implementation of the scheme is subject to several conditions, including regulatory and shareholder approvals. The procedural timeline is now set, with the first court date scheduled for mid-September 2026. Following this, the formal scheme meeting of Carnaby shareholders is anticipated to take place in late October or early November. Provided all necessary conditions are satisfied, the company expects to reach the final implementation date by mid-November 2026. This acquisition represents a targeted move to bolster copper output, utilizing proven regional infrastructure to drive operational growth in the coming years.

Read the full announcement: Evolution agrees to acquire Carnaby Resources