Dundee Precious Metals Inc. has announced that it has agreed with Adriatic Metals plc to the terms of an acquisition of the entire issued, and to be issued, ordinary share capital of Adriatic for an implied equity value of approximately $1.3 billion. Upon completion of the Transaction, DPM will acquire 100% of the Vareš operation in Bosnia and Herzegovina, a producing silver-lead-zinc-gold underground mine.
“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,” David Rae, President and Chief Executive Officer of Dundee Precious Metals, commented. “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.”
“Vareš remains firmly on track to become a low-cost precious metal producer, underpinned by a long mine life, a high-grade deposit and strong exploration potential,” Laura Tyler, Managing Director and Chief Executive Officer of Adriatic Metals, stated. “What makes Vareš so exciting is that it is at the beginning of its journey, with significant growth potential ahead.
“This transaction brings together complementary strengths to create a dynamic and diversified mining company with meaningful scale. We see clear synergies between the asset portfolios of DPM and Adriatic, supported by DPM’s strong financial capacity and proven operational expertise. Together, these strengths are expected to unlock further value for shareholders of both companies in both the near and longer term.
“Importantly, the creation of a diversified mining company in the Balkan region will bring benefits not only to our employees and shareholders, but also to local communities and broader regional stakeholders. This is a compelling opportunity to be part of a transformative and long-term success story – one that we fully endorse and recommend to all our stakeholders.”
Vareš is an underground precious metals-dominant mine with an offsite processing facility and prospective 4,400-hectare land package, located approximately 50 kilometres north of Sarajevo in Bosnia and Herzegovina. Since announcing first concentration production in 2024, Vareš has been ramping up to nameplate processing capacity. Vareš produces a saleable silver-zinc concentrate and a lead-silver-gold concentrate.
As part of DPM’s evaluation of Vareš, the Company commissioned SRK Consulting (UK) Limited to prepare an independent technical report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for Vareš reflecting DPM’s current plans for the asset, including the mine plan and mining and operating methods contemplated.
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