Dundee in talks to acquire Adriatic Metals for $935M

Adriatic Metals (LON: ADT1) confirmed Tuesday it is in takeover talks with Canadian miner Dundee Precious Metals (TSX: DPM).

The discussions, first reported by Sky News, could value the UK-based company at around £700 million ($935 million), according to unnamed banking sources cited by the outlet. 

Under UK takeover rules, Dundee has until June 17 to make a formal offer or walk away, it said.

Adriatic Metals said it has granted Dundee limited access to due diligence materials. If a deal proceeds, Dundee would acquire the Vares silver-zinc mine in central Bosnia, currently Adriatic’s flagship operation. The company is also advancing the Raška zinc-silver project in Serbia, aiming to revive two past-producing mines.

Adriatic shares surged nearly 30% on the news, closing at 230p in London and lifting the company’s market value to nearly £790 million ($1 billion).

Adriatic is led by chief executive Laura Tyler, a former senior executive at BHP and one of the few women heading a global mining company.