Dundee Precious Metals to Acquire Adriatic Metals in $1.25B Deal

Dundee Precious Metals Expands Balkan Footprint with Adriatic Metals Acquisition

Dundee Precious Metals (TSX: DPM) announced a $1.25 billion cash-and-stock deal to acquire UK-based Adriatic Metals (LON: ADT1). The acquisition secures control over Adriatic’s Vareš silver-zinc mine in Bosnia and the Raška zinc-silver project in Serbia. Dundee views these assets as strategic additions that will enhance near-term production and extend mine life. CEO David Rae emphasized that the Vareš project aligns well with Dundee’s existing portfolio, offering a highly prospective land package and diversification of cash flow streams.

Adriatic shareholders will receive 268 pence per share, comprising 93 pence in cash and 0.1590 new Dundee shares. This offer values Adriatic at a 50.5% premium to its last closing price before takeover talks became public. Upon deal completion, Dundee shareholders will hold approximately 75.3% of the combined company, with Adriatic shareholders owning 24.7%. The deal already has voting support from Adriatic directors and major shareholders representing 37.2% of shares.

Strategic Benefits of the Dundee-Adriatic Metals Deal

The acquisition bolsters Dundee’s production pipeline and broadens its geographic reach in the resource-rich Balkan region. Adriatic’s CEO Laura Tyler confirmed the Vareš mine remains on track as a low-cost producer due to its high-grade deposit and long mine life, along with promising exploration potential. Post-acquisition, Adriatic’s executive leadership, including Tyler and CFO Michael Horner, will step down, and the company will close its UK office. The merged entity will maintain its global headquarters in Toronto, consolidating operations.

This transaction highlights a trend of increasing foreign investment in UK-listed mining assets, as Dundee strengthens its global portfolio and leverages Adriatic’s growth prospects in critical metals.

SuperMetalPrice Commentary:

Dundee Precious Metals’ acquisition of Adriatic Metals marks a significant move to expand its Balkan presence and resource base. This strategic deal enhances Dundee’s ability to deliver diversified cash flow and production growth in key metals such as silver and zinc. As foreign investment surges into UK-listed companies, Dundee positions itself to capitalize on new market opportunities while streamlining operations. Industry watchers should monitor how this consolidation impacts regional mining dynamics and the global supply of silver and zinc.