Evolution Mining has acquired the Queensland Investment Corporation’s 13.7 per cent stake in Carnaby Resources as it drives towards its 100 per cent takeover goal.

The QIC late last year announced it was making a $12.5 million investment to advance Carnaby Resources’ Greater Duchess copper-gold project under the via the Queensland Critical Minerals and Battery Technology Fund (QCMBTF).

Evolution (ASX:EVN) today announced it had acquired about 37.9 million QCMBTF shares in Carnaby through the issue of about 2.6 million new Evolution fully paid ordinary shares to the fund.

This 13.7 per cent stake makes Evolution, which operates Cloncurry district’s Ernest Hnery mine, the largest shareholder in Carnaby.

The companies last month 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.

Related: New Trekelano results boost Greater Duchess tonnage

The scheme has been unanimously recommended by the Carnaby board, and its directors (who collectively represent 7.3 per cent of Carnaby) intend to vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the scheme is in the best interests of Carnaby shareholders.

Evolution said the agreement remained on track, with implementation targeted for November.

The company has earlier described the move as having the potential to deliver about 10ktpa of additional copper production at Ernest Henry.

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

Carnaby this week announced a 10 per cent lift in mineral resources at its Greater Duchess copper-gold project in North-West Queensland to 482,800 CuEq tonnes.

“The MRE (mineral resources estimate) increase has predominantly come from the addition of inferred mineral resource at Trek 1 underground, for which scoping level studies will be undertaken separate to the Greater Duchess feasibility study, which remains in progress,” Carnaby Resources (ASX: CNB) managing director Rob Watkins said.

“Carnaby is now focussed on delivering the Greater Duchess project into development through what we believe is the superior risk-weighted pathway under the proposed acquisition by Evolution Mining.”