Dundee Precious Metals Inc. (TSX:DPM) has agreed to acquire all issued, and to be issued, shares of Adriatic Metals plc (LON:ADTI) in a deal valued at approximately US$1.25B. This deal will provide Dundee with 100% ownership of the Vareš operation in Bosnia and Herzegovina, a producing silver-lead-zinc-gold underground mine.
The acquisition will provide Dundee with an enhanced portfolio of assets and grow their production up to 425,000 gold equivalent ounces in 2027. The addition of another long-life producing asset complements Dundee’s already strong cash flow profile and provides enhanced cash generation opportunities to fund the company’s organic growth pipeline.
Commenting on the transaction, David Rae, President and Chief Executive Officer of Dundee Precious Metals noted, “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.
“Vareš is a logical fit with our portfolio, as it significantly increases DPM’s mine life while adding near-term production growth, a highly prospective land package, and cash flow diversification. We are well-positioned to leverage our expertise in underground mining, our regional presence, successful track record of building and ramping up new mines, as well as our strong financial position to further optimize the operation and realize Vareš’ full value potential, based on our analysis.”
