Evolution Mining to buy gold and copper miner Carnaby Resources for $213m
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The news: Evolution Mining has agreed to acquire ASX-listed copper and gold producer Carnaby Resources in an all-scrip deal valuing the target at $213 million.
The numbers: Carnaby shareholders will receive 0.0682 new Evolution shares for each Carbany share held, implying an offer price of 77 cents for each Carnaby share.
The scheme of arrangement has been unanimously recommended by the Carnaby board. All board directors, representing a combined 7.3% of the company, intend to vote in favour of the deal.
The context: Evolution said the acquisition is consistent with its strategy of building a portfolio of high-quality, long-life gold and copper assets in tier-one jurisdictions.
The purchase incorporates the copper-rich Greater Duchess project, located near Evolution’s Ernest Henry operations in Queensland.
What they said: “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,” said Evolution chief executive Lawrie Conway.
“The close proximity of Greater Duchess provides an opportunity to increase copper production at Ernest Henry, utilising latent mill capacity and existing infrastructure.”
The source: ASX
