Toronto-based Dundee Precious Metals (TSX: DPM) has secured UK court approval for its $1.25 billion acquisition of Adriatic Metals (LON: ADT1), paving the way for the deal to close this week.
The High Court of Justice in England and Wales sanctioned the cash-and-stock transaction, first announced in June. Dundee confirmed that completion is expected on Wednesday, after which Dundee and Adriatic shareholders will own 75.3% and 24.7% respectively of the enlarged group. The combined company will maintain its global headquarters in Toronto, while Adriatic’s UK office will shut down.
In a parallel move, Dundee has also gained approval for a listing on the Australian Securities Exchange (ASX), with the official quotation expected to be announced shortly.
Expanding Balkan footprint
The deal gives Dundee control of Adriatic’s flagship Vareš polymetallic mine in Bosnia and the Raška project in Serbia, expanding its production pipeline in a region where it already has a presence.
The Vareš mine is expected to become a low-cost silver-zinc producer, supported by high-grade deposits, strong exploration upside, and a projected 15-year mine life. It boasts a nameplate capacity of 90,000 tonnes of zinc concentrate and 65,000 tonnes of silver-lead concentrate per year, sourced from reserves of 12.3 million tonnes grading 192 g/t silver and 5.7% zinc.
“Vareš is a logical fit with our portfolio, adding near-term production growth, a highly prospective land package, and cash flow diversification,” Dundee CEO David Rae said.
Adriatic first acquired Vareš in 2017, reviving a historic silver mine shuttered during the 1990s conflict. The company delivered first concentrate in early 2024, marking Europe’s first new mine in more than a decade.
