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In a bold move to consolidate its grip on Europe's untapped mineral wealth, Dundee Precious Metals Inc. announced Friday a $1.25 billion deal to acquire British rival Adriatic Metals PLC, marking a high-stakes power shift in the global mining arena.

The Toronto-listed gold miner will acquire 100% of Adriatic’s shares via a cash-and-stock transaction, effectively taking the London- and Australia-listed company private. The acquisition hands Dundee control over Adriatic’s flagship Vareš Silver Operation in Bosnia and Herzegovina—a prized deposit of silver, lead, and zinc poised to reshape regional mining dynamics.

A Balkan Crown Jewel Joins Dundee's Portfolio

David Rae, Dundee’s CEO, heralded the move as a natural evolution of the company’s strategic footprint.

“Vareš fits seamlessly with our core portfolio,” Rae said. “It delivers near-term production growth, extends mine life, and strengthens our cash flow profile with high-margin polymetallic exposure.”

Dundee, already active in Bulgaria, Serbia, and Ecuador, aims to use its underground mining expertise and robust balance sheet to fully unlock the Vareš mine’s commercial potential.

Adriatic began production at the Vareš operation in 2024 and also owns the Raška Zinc-Silver Project in Serbia, acquired through its 2020 purchase of Toronto-listed Tethyan Resource Corp.

Terms of the Deal: Premium Price, Heavyweight Lawyers

Under the agreement, Adriatic shareholders will receive 93 pence in cash and 0.1590 new Dundee shares per share, equating to 268 pence per share—a 50.5% premium on Adriatic’s closing price of 178 pence on May 19, just before merger talks became public.

The deal has attracted heavyweight legal advisors from across three continents:

• Dundee is represented by Bryan Cave Leighton Paisner LLP (UK), Cassels Brock & Blackwell LLP (Canada), and Gilbert + Tobin (Australia).

• Adriatic is guided by Herbert Smith Freehills Kramer LLP in the UK and Australia, and Stikeman Elliott LLP in Canada.

The acquisition will be executed via a court-sanctioned scheme of arrangement and requires 75% shareholder approval. So far, Dundee has secured written support from investors representing 37.23% of Adriatic’s shares.

Regulatory Hurdles Before Year-End Close

Before the deal is sealed, it must clear a gauntlet of approvals, including:

• Consent from the Financial Conduct Authority, the Takeover Code, and the London Stock Exchange

• Green lights from the Toronto and Australian stock exchanges

• Unconditional approval from the Bosnian Competition Council

Dundee expects the transaction to close by December, pending the successful navigation of these regulatory checkpoints.