Dundee Precious Metals (TSX: DPM) has received final UK court approval for its $1.25 billion cash-and-stock acquisition of Adriatic Metals (LON: ADT1), clearing the way for the deal to close this week. The High Court of Justice in England and Wales sanctioned the merger on Friday, with completion expected on Wednesday.
Following the transaction, Dundee and Adriatic shareholders will hold 75.3% and 24.7% of the combined company respectively. Global headquarters will remain in Toronto, while Adriatic’s UK office will shut down. Dundee has also secured approval for a listing on the Australian exchange, with quotation details to follow.
The acquisition expands Dundee’s Balkan footprint by adding Adriatic’s flagship Vareš silver-zinc mine in Bosnia and the Raška project in Serbia. The Vareš operation, which produced its first concentrate in early 2024, is Europe’s first new mine in over a decade. It has a projected 15-year life, supported by an ore reserve of 12.3 million tonnes grading 192 g/t silver and 5.7% zinc, with annual output capacity of 90,000 tonnes of zinc concentrates and 65,000 tonnes of silver-lead concentrates.
“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,” Dundee CEO David Rae said at the time of the acquisition announcement in June.
Adriatic acquired Vareš in 2017 with the aim of reviving a historic silver mine abandoned during the 1990s Balkan conflict. Its integration into Dundee’s portfolio positions the Canadian miner for stronger production growth and broader commodity exposure.
