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.