Evolution Mining is expanding its copper production potential at Ernest Henry mine in North-West Queensland through an agreement to purchase Greater Duchess project owner Carnaby Resources.

Evolution (ASX:EVN) said the move had the potential to deliver about 10ktpa of additional copper production at Ernest Henry (pictured ).

This will use latent mill capacity and improve the operation’s cost profile while supporting the Bert expansion project currently in execution.

The companies have entered into a binding scheme implementation deed that will see Carnaby (ASX: CNB) shareholders receive 0.0682 new Evolution shares for each Carnaby share held, valuing Carnaby at about $213 million.

“The combination of Ernest Henry’s Bert project and Greater Duchess enhances our ability to continue to maximise production and growth at Ernest Henry,” Evolution managing director and chief executive officer Lawrie Conway said.

Related: Evolution makes strides on Bert mining front

“Combining Carnaby’s Greater Duchess and prospective tenement package, together with Evolution’s established operating presence in North-West Queensland, provides regional consolidation and has the potential to unlock value for both Carnaby and Evolution shareholders.

“Under our ownership, we will be able to best optimise and integrate Greater Duchess within our long-life Ernest Henry operations and take full advantage of the additional regional exploration potential.”

Evolution intends to undertake an updated feasibility study for Greater Duchess, building on work already undertaken by Carnaby.

The study, expected to be completed within the next 12-18 months, will assess the optimal approach for integration of Greater Duchess into Ernest Henry to deliver low-cost copper production growth.