Toronto-listed Dundee Precious Metals (DPM) is set to acquire London- and Sydney-listed Adriatic Metals in a $1.25 billion cash-and-stock transaction, expanding its portfolio with the addition of the Vareš silver project in Bosnia and Herzegovina. The deal strengthens DPM’s position in the Balkans and adds near-term production growth and cash flow diversification.
Adriatic shareholders will receive 0.1590 new DPM shares and 93 pence in cash for each Adriatic share, valuing each share at 268 pence—a 50.5% premium to Adriatic’s LSE closing price on May 19. DPM has already secured support from Adriatic directors and shareholders holding 37.23% of shares.
The Vareš project, Adriatic’s flagship operation, completed construction last year and began producing silver/lead and zinc concentrates. The mine is ramping up to nameplate capacity of 0.8 million tonnes per year by the second half of 2025, with expansion studies under way to increase output to 1.3 million tonnes.
“This transaction brings together complementary strengths to create a dynamic and diversified mining company with meaningful scale,” said Adriatic CEO Laura Tyler. DPM CEO David Rae highlighted the strategic fit, citing DPM’s expertise in underground mining and financial strength to maximise Vareš’ potential.
Analysts from SP Angel endorsed the deal, viewing it as beneficial for Adriatic shareholders and noting that the combined entity could become a key player in the Balkan mining sector. They also noted possible but unlikely interference from Zijin, which already operates in the region.
