Another day, and another London-listed company is snapped up by an overseas entity.
Today, Dundee Precious Metals Inc. has agreed to acquire Adriatic Metals Plc in a recommended cash and share offer that values the British mining company at approximately US$1.2 billion.
Adriatic Metals began silver production at its Vareš mine last year and has been ramping up production since. In the quarter ended March 31st, Adriatic Metals’ production increased 46% compared to the prior quarter, and sales increased 26% to $34m.
Rising silver prices, increasing production and Adriatic Metals’ lowly valuation appear to have been too attractive for Dundee to let the opportunity slip by.
Under the terms of the acquisition, Adriatic shareholders will receive 0.1590 new DPM shares and 93p in cash per Adriatic share held.
The deal values each Adriatic share at 268p, based on DPM’s closing price of CAD$20.33 on 11 June 2025. The consideration will be settled 34.7% in cash and 65.3% in equity.
The transaction represents a 50.5% premium to Adriatic’s closing price of 178p on 19 May 2025 and a 31.8% premium to the 30-day volume-weighted average price prior to the offer period.
DPM’s acquisition strategy centres on Adriatic’s flagship Vareš Silver Operation in Bosnia and Herzegovina. The company believes the transaction aligns with its goal to create a combined group with enhanced operational and financial capabilities.
DPM highlighted its existing presence in the Balkans, where it currently operates both underground and open-pit mining operations, as providing operational synergies.
The Vareš operation represents a new underground precious metals mining operation with what DPM describes as a low-cost profile, extended mine life, and significant exploration potential.
The deal will be a boost to junior miners moving towards production, but another kick in the teeth for London’s markets.
“Adding Adriatic’s Vareš operation to our strong asset portfolio creates a premier mining business with a peer-leading growth profile, high-quality development and exploration pipeline and a robust platform to deliver above-average returns,” said Commenting on this Announcement, David Rae, the CEO of DPM.
“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. We are well-positioned to leverage our expertise in underground mining and our strong financial position to further optimize the operation and realize Vareš full value potential, based on our analysis.”