Evolution Mining Secures 13.7% Stake in Carnaby Resources Ahead of Acquisition

Evolution Mining Strengthens Grip on Carnaby Resources

Evolution Mining (ASX:EVN) has solidified its path to full ownership of Carnaby Resources (ASX:CNB) by acquiring a 13.7% stake from the QIC Queensland Critical Minerals Fund (QCMF). The transaction was executed through the issuance of approximately 2.6 million new Evolution shares to QCMF, calculated using the Scheme of Arrangement exchange ratio of 0.0682 Evolution shares per Carnaby share. This move makes Evolution the largest shareholder in Carnaby ahead of the planned full acquisition.

Scheme of Arrangement Moves Closer to Completion

The acquisition is part of Evolution’s broader strategy to acquire 100% of Carnaby via a Scheme of Arrangement, which remains on track for implementation targeted in November 2026. The Scheme has received unanimous recommendation from the Carnaby Board, with all directors; who collectively hold 7.3% of Carnaby shares; committed to voting in favour, barring any superior proposal. The Scheme is also subject to an independent expert’s ongoing endorsement that it serves Carnaby shareholders’ best interests.

Strategic Copper Expansion Near Ernest Henry

This acquisition aligns with Evolution’s copper growth ambitions, expanding its footprint near the Ernest Henry mine in Queensland. Carnaby’s assets, including the Greater Duchess Project, promise to enhance Evolution’s copper production pipeline by tapping into existing processing infrastructure and latent mill capacity. This complements Evolution’s FY27 production guidance of 660,000–730,000 ounces of gold and 63,000–70,000 tonnes of copper, underlining the company’s commitment to diversifying its resource base and boosting copper output.

Capital Impact and Shareholder Considerations

The share issuance to QCMF not only secures Evolution’s stake but also dilutes existing shareholders slightly, a typical feature of acquisitions via share swaps. While the financial terms beyond the share exchange ratio remain undisclosed, the transaction reflects Evolution’s strategic prioritisation of copper assets within its portfolio. Investors will be watching how this stake acquisition influences the final shareholder vote and whether any competing offers emerge before the Scheme’s implementation.