LONDON: Dundee Precious Metals Inc. (DPM) has agreed to acquire Adriatic Metals Plc in a recommended cash and share deal valued at approximately $1.25 billion, the companies announced Friday.
Under the terms of the transaction, Adriatic shareholders will receive 0.1590 of a new DPM share and 93 pence in cash for each Adriatic share. The offer values each Adriatic share at 268 pence, based on DPM’s closing share price of CAD$20.33 on June 11, 2025.
The acquisition, structured as a scheme of arrangement under U.K. law, is expected to create a stronger combined mining group with enhanced production and financial prospects. DPM highlighted Adriatic’s Vareš Silver Operation in Bosnia and Herzegovina as a key asset, citing its low-cost profile, long mine life and exploration potential.
DPM, which already operates mines in the Balkans, said the deal aligns with its strategy to expand its portfolio while maintaining financial strength. The company expects the transaction to be accretive to cash flow per share within the first year after completion.
“This transaction combines two complementary businesses, providing Adriatic shareholders with continued exposure to a diversified portfolio of high-quality assets,” said David Rae, DPM’s president and CEO.
The deal is subject to shareholder and regulatory approvals, with completion expected in the fourth quarter of 2025.
Adriatic’s board unanimously recommended the offer, stating it delivers “compelling value” for shareholders.
DPM, headquartered in Toronto, operates mines in Bulgaria and Serbia, while London-listed Adriatic focuses on silver and base metals in Bosnia and Herzegovina.
David Rae, the CEO of DPM, said: “Adding Adriatic’s Vareš operation to our strong asset portfolio creates a premier mining business with a peer-leading growth profile, high-quality development and exploration pipeline and a robust platform to deliver above-average returns.
The Vareš is a logical fit with our portfolio, and adds near-term production growth and mine life, a highly prospective land package, and cash flow diversification. We are well-positioned to leverage our expertise in underground mining and our strong financial position to further optimize the operation and realize Vareš full value potential, based on our analysis.”
Laura Tyler, the CEO of Adriatic, said: “The Vareš Silver Operation remains on track to become a low cost precious metal producer, underpinned by a long mine life, a high-grade deposit and strong exploration potential.
What makes Vareš so exciting is that it is at beginning of its journey, with significant growth ahead. This transaction brings together complementary strengths to create a dynamic and diversified mining company with meaningful scale. The combined group will be well placed to pursue additional value-additive opportunities. We see clear synergies between the asset portfolios of DPM and Adriatic, supported by DPM’s strong financial capacity and proven operational expertise.
Together these strengths are expected to unlock further value for shareholders of both companies, in both the near and longer term. Importantly, the creation of a diversified mining company in the Balkan region will bring benefits not only to our employees and shareholders, but also to local communities and broader regional stakeholders.
This transaction presents a compelling opportunity to be part of a transformative and long-term success story – one we fully endorse and recommend to all our stakeholders.”