Adriatic Metals Embraced by Dundee Precious Metals in $1.3 Billion Deal
Deal News | Jun 13, 2025 | Globenewswire
Dundee Precious Metals Inc. (DPM) has announced a $1.3 billion acquisition of Adriatic Metals plc, thereby obtaining ownership of Adriatic's Vare operation in Bosnia and Herzegovina, a producing mine known for silver-lead-zinc-gold deposits. This strategic acquisition aims to enhance DPM's mining portfolio by expanding production growth, extending mineral reserve life, and amplifying cash flow generation. The Vare site, known for its high-grade deposit and exploration potential, is viewed as highly complementary to DPM's existing assets. The deal is structured as a court-sanctioned scheme under the UK Companies Act, with completion anticipated by year-end 2025, subject to shareholder and regulatory approvals. The transaction underscores DPM's objective to leverage their mining expertise and regional experience in order to optimize operation capabilities at the Vare site.
Sectors
- Mining
- Natural Resources
Geography
- Bosnia and Herzegovina – The acquisition includes the Vare mine located in Bosnia and Herzegovina, making it a key geography in the context of the article.
- Canada – Dundee Precious Metals, the acquiring company, is based in Canada, which plays a pivotal role in the transaction.
- United Kingdom – Adriatic Metals, the company being acquired, is based in the United Kingdom, indicating its importance in the acquisition process.
Industry
- Mining – This industry classification is relevant as the article discusses the acquisition of a mining operation, focusing on precious and base metals production.
- Natural Resources – The natural resources classification pertains to the extraction and commercialization of minerals such as silver, gold, lead, and zinc, which are central to the businesses involved in the article.
Financials
- 1.3 billion dollars – The implied equity value of the acquisition of Adriatic Metals by Dundee Precious Metals.
- 2.1 billion dollars – Forecasted post-tax cash flow over the initial mine life at base case commodity price assumptions for the Vare operation.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dundee Precious Metals Inc. | Bidding Company/Buyer | Company | Dundee Precious Metals Inc. is an international gold mining company based in Canada. |
| Adriatic Metals plc | Target Company | Company | A UK-based precious and base metals producer with operations including the Vare Silver Operation in Bosnia and Herzegovina. |
| BMO Capital Markets | Financial Advisor (Dundee Precious Metals) | Company | Advising Dundee Precious Metals on the financial aspects of the acquisition. |
| RBC Capital Markets | Financial Advisor (Adriatic Metals) | Company | Acting as joint financial advisor to Adriatic Metals for the transaction. |
| Macquarie Capital (Europe) Limited | Financial Advisor (Adriatic Metals) | Company | Acting as joint financial advisor to Adriatic Metals for the transaction. |