Carnaby vote clears Evolution deal as Greater Duchess resource grows

Evolution scheme clears shareholder vote

Carnaby Resources Limited (ASX:CNB) has cleared the most important shareholder hurdle in Evolution Mining Limited’s (ASX:EVN) proposed acquisition, but the transaction is not yet complete. Carnaby shareholders approved the scheme at a meeting held on 26 October, with the deal still requiring approval at the second Court hearing scheduled for 29 October and satisfaction or waiver of the remaining conditions.

If it becomes effective and is implemented, eligible Carnaby shareholders will receive 0.0682 new Evolution shares for every Carnaby share. The expected timetable would see Carnaby shares suspended after trading on 30 October, with implementation targeted for 10 November and delisting expected on 11 November. Those dates remain indicative and depend on the Court process and other conditions. The vote came after strong proxy support for the scheme, which had been reported before the final meeting.

Greater Duchess resource expands at Trekelano

While the transaction moves through its final legal steps, the underlying asset base continued to grow. Carnaby’s Greater Duchess Copper Gold Project in Queensland now carries a mineral resource of 30.8 million tonnes at 1.6% copper equivalent for 482,800 CuEq tonnes, a 10% increase in total contained CuEq reported by the company.

“Trekelano Mineral Resource In Situ Block Model CuEq% showing PFS Ore Reserve Open Pit Designs.”

Caption and image © Carnaby Resources Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 27 Oct 2026.

The quarter’s resource work was concentrated at Trekelano. Its resource increased 47% to 7.1 million tonnes at 1.8% CuEq for 132,000 CuEq tonnes, while the Trek 1 underground estimate stands at 1.0 million tonnes at 3.5% CuEq for 35,100 CuEq tonnes. The company said 86% of that Trek 1 underground estimate is inferred, an important qualification when considering how much of the resource has yet to reach a higher confidence classification. Trek 2 increased 18% to 1.2 million tonnes at 1.2% CuEq.

The resource update builds on the Greater Duchess feasibility study, which had outlined a 12-year mine life, a $322 million net present value and a maiden probable ore reserve of 8.4 million tonnes at 1.9% CuEq. Those earlier project economics are not revised in this quarterly report; the new information is principally the updated Trekelano resource and additional drilling.

Drilling adds high-grade zones but leaves scale to prove

At the Miniboom discovery within Mount Hope Central, new drilling confirmed shallow copper-gold mineralisation, including 20 metres at 2.2% CuEq and 12 metres at 2.3% CuEq, with a five-metre interval at 4.1% CuEq in the latter hole. Carnaby said the higher-grade strike length remains limited to less than 70 metres, although the lode is open at depth.

“Trekelano Plan showing location of new drill results from Trekelano.”

Caption and image © Carnaby Resources Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 27 Oct 2026.

Trek 1 produced wider intersections, including 88.6 metres at 1.2% CuEq in a geotechnical hole and a separate 38-metre Footwall Lode intersection at 1.9% CuEq. The company interpreted the Main Lode and Footwall Lode as potentially joining in a broad mineralised zone that remains open down plunge. By contrast, a hole at Inheritance missed significant mineralisation after lifting unexpectedly, while Trek 2 remained open to the north.

Cash position gives limited room beyond transaction milestone

Carnaby reported $7.8 million in cash and restricted cash at 30 September, including $1.4 million held as security for bank guarantees. The Appendix 5B records unrestricted cash and cash equivalents of $6.402 million, down from $9.392 million at the previous quarter end.

Quarterly net cash used in operating activities was $2.514 million, including $1.047 million of exploration and evaluation spending, $705,000 in staff costs and $879,000 in administration and corporate costs. On that reported expenditure profile, the company estimated 2.5 quarters of funding. The transaction timetable therefore matters not only as a corporate milestone but also as the point at which Carnaby’s standalone funding position may cease to be the central question for shareholders.