Evolution Mining acquires 13.7% stake in Carnaby Resources

• Evolution Mining acquired a 13.7% stake in Carnaby Resources from the QIC Queensland Critical Minerals Fund.
• The acquisition was completed via the issuance of approximately 2.6 million new Evolution shares.
• The transaction supports Evolution's planned 100% acquisition of Carnaby via a scheme of arrangement.

Evolution Mining (ASX:EVN) acquired a 13.7% stake in Carnaby Resources (ASX:CNB) by issuing 2.6 million new shares to the QIC Queensland Critical Minerals Fund.

This stake purchase follows Evolution's announcement on July 27 proposing to acquire 100% of Carnaby through a Scheme of Arrangement.

Under the transaction terms, Carnaby shareholders receive 0.0682 new Evolution shares for each Carnaby share held, resulting in Evolution issuing approximately 2.6 million shares for QCMF's 37.9 million Carnaby shares.

Evolution stated that the transaction makes it the largest shareholder in Carnaby ahead of the planned November implementation target.

Following the announcement, the Evolution share price was down at $15.74.

The Carnaby board unanimously recommended the scheme, with all directors intending to vote their combined 7.3% stake in favour of the deal.

Evolution indicated that implementation of the full acquisition remains on track for November, subject to independent expert conclusions.