Incorporation of Carnaby's Queensland Project into Evolution's Operations Could Deliver Around 10,000 Tonnes-per-Annum of Copper Production, Euroz Hartleys Says

MT Newswires Live07-27 14:29

The incorporation of Carnaby Resources' (ASX:CNB) Greater Duchess copper-gold project has the potential to deliver around 10,000 tonnes-per-annum of additional copper production at Evolution Mining's (ASX:EVN) Ernest Henry operations, Euroz Hartleys said in a Monday note.

Evolution agreed to acquire Carnaby via a scheme of arrangement under which Carnaby shareholders will receive 0.0682 new Evolution shares for each Carnaby share held, valuing Carnaby at around AU$213 million.

The transaction allows Evolution to incorporate Carnaby's Greater Duchess project into its Ernest Henry operations, providing a lower capital development to production than a standalone project and leveraging Ernest Henry's excess processing capacity. .

The investment firm maintained speculative buy recommendation on Carnaby and adjusted its price target to AU$0.77 per share from AU$0.96 per share, aligning with the takeover bid price.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment