May 20 (Reuters) - UK's Adriatic Metals ( ADMLF ) said on

Tuesday it was in talks with Canadian peer Dundee Precious

Metals ( DPMLF ) regarding a possible takeover.

Sky News, which first reported about the potential talks

earlier in the day, said a deal could value the British firm at

about 700 million pounds ($935.3 million), citing bankers.

Adriatic Metals ( ADMLF ) said it has provided Dundee access to

limited due diligence information.

Dundee is required to provide a firm offer or walk away from

the talks by June 17, under the UK takeover rules.

($1 = 0.7484 pounds)