Adriatic Metals to be Acquired by Dundee Precious Metals in $1.3 Billion Deal
Deal News | Jun 13, 2025 | EIN
Dundee Precious Metals Inc. (DPM), a Canadian-based international mining company, announced its proposed acquisition of Adriatic Metals plc, valued at approximately $1.3 billion. This strategic acquisition would allow DPM to enhance its asset portfolio with high-margin growth opportunities, including the Vare operation, a producing mine in Bosnia and Herzegovina. Adriatic's Vare mine, known for its high-grade deposits, is on the cusp of scaling up, promising significant operational and financial synergies. The acquisition will be executed as a court-sanctioned scheme under the UK Companies Act, pending various approvals. DPM's board recommends shareholder approval, supported by evaluations from financial advisors BMO Capital Markets. The acquisition underscores DPM's strategy to deliver growth through disciplined transactions, leveraging regional expertise and strong financial positions.
Sectors
- Mining and Metals
- Financial Services
Geography
- Bosnia and Herzegovina – The Vare mining operation, part of Adriatic Metals, is located in Bosnia and Herzegovina, making it a central focus of the acquisition.
- Canada – Dundee Precious Metals Inc., the acquiring company, is headquartered in Canada and listed on the Toronto Stock Exchange.
- United Kingdom – Adriatic Metals, the target of the acquisition, is a UK-based company with shares listed on the London Stock Exchange.
Industry
- Mining and Metals – The article focuses on the acquisition of Adriatic Metals and its mining operations, particularly precious and base metals mining activities.
- Financial Services – The acquisition deal involves substantial financial transactions and advisory roles, including legal and financial advising services from notable institutions.
Financials
- $1.3 billion – Implied equity value of the acquisition of Adriatic Metals by Dundee Precious Metals.
- $1.6 billion – Post-tax Net Present Value (NPV) of Vare under the base case scenario.
- $2.1 billion – Projected post-tax cash flow over the initial mine life of Vare.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dundee Precious Metals Inc. | Acquiring Company | Company | A Canadian-based international gold mining company expanding its portfolio with strategic acquisitions. |
| Adriatic Metals plc | Target Company | Company | A UK-based precious and base metals producer with operations in Bosnia and Herzegovina. |
| Vare Operation | Asset | Operation | A high-grade precious metals mine in Bosnia and Herzegovina, central to the acquisition. |
| BMO Capital Markets | Financial Advisor to DPM | Company | Provided financial advisement to Dundee Precious Metals for the transaction. |
| RBC Capital Markets | Financial Advisor to Adriatic | Company | Joint financial advisory service provider for Adriatic Metals regarding the acquisition. |
| Macquarie Capital (Europe) Limited | Financial Advisor to Adriatic | Company | Also acted as joint financial advisors to Adriatic for the transaction. |
| Bryan Cave Leighton Paisner LLP | Legal Advisor to DPM | Company | Provided UK legal advisement to Dundee Precious Metals for the transaction. |