11:49 AM EDT, 06/13/2025 (MT Newswires) -- (Updates shares.)

Dundee Precious Metals ( DPMLF ) on Friday said it agreed to acquire U.K.-based Adriatic Metals in a US$1.3 billion deal.

Dundee will acquire 100% of the Vares operation in Bosnia and Herzegovina, a producing silver-lead-zinc-gold underground mine.

The deal is expected to raise Dundee's production to up to 425,000 gold equivalent ounces in 2027 through the ramp-up of Vares. The mine has an initial 15-year operating life with potential to extend further from a prospective 4,400-hectare land package.

"Vares 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," said chief executive David Rae.

Under the deal, Adriatic shareholders will receive 0.159 of a Dundee share and 93 pence in cash for each ordinary share of Adriatic. The transaction will be implemented by means of a court-sanctioned scheme of arrangement.

Following deal completion, Dundee's current shareholders will own 75% of the company with the former Adriatic shareholders owning the rest.

Dundee shares were last seen up $0.435 to $20.995 on the Toronto Stock Exchange.

Price: 20.97, Change: +0.45, Percent Change: +2.19