Back on the 27th July 2026, gold/copper exploration play Carnaby Resources (CNB AU) entered into a Scheme with Evolution Mining (EVN AU).
Evolution offered 0.0682 new shares for each Carnaby share, or an indicative Offer price of A$0.77/share, a 60.4% premium. Post merger, Carnaby shareholders would hold ~0.9% in the enlarged entity.
Carnaby’s board unanimously support terms. Directors hold 7.3%. Retail pushback should be limited: scrip terms are now up ~41% since the Offer was announced.
Carnaby Resources (CNB AU) is not particularly liquid. Look away now if this is not your thing.
The Trade:
A straightforward merger.
I don’t see retail investors disrupting the deal.
The share price is now up four-fold since 1Q25.
Trading at a gross/annualised spread of 4.6%/22.7%, assuming mid-November completion.
You could look to go long Carnaby, short Evolution here.