Adriatic Metals (LSE: 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 (US$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.
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.
Shares in Adriatic surged nearly 30% on the news, closing at 230 pence in London and lifting the company’s market value to nearly £790 million. Shares in Dundee were 0.6% firmer at C$18.98 apiece in Toronto afternoon trading, valuing the company at C3.18 billion.
Adriatic is led by CEO Laura Tyler, a former senior executive at BHP (NYSE, LSE, ASX: BHP) and one of the few women heading a global mining company.
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