Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) has now announced it will be bought by Canadian miner Dundee Precious Metals in a deal worth US$1.25bn
Shareholders in the AIM-quoted firm are set to receive a combination of cash and shares: 93p and 0.159 new Dundee shares for each Adriatic share they own.
In May, Adriatic confirmed media speculation that it was in talks with Dundee.
Today, the pair of companies announced a ‘recommended’ transaction backed by both boards.
Pitched at a 268p per share valuation, the package on paper represents a 50% premium to Adriatic’s closing price on 19 May (the day before the talks were publicly acknowledged).
It's expected that the transaction will close in the fourth quarter, subject to respective shareholder approvals. As well as Adriatic’s board recommendation, shareholders representing over 37% of the company’s shares are also backing the deal, with ‘irreversible undertakings’.
The transaction comes as Adriatic has brought its Vares silver mine project, in Bosnia and Herzegovina, to production and as it is set to ramp-up over the coming years.
"The Vareš Silver Operation remains on track to become a low-cost precious metal producer, underpinned by a long mine life, a high-grade deposit and strong exploration potential,” said Adriatic chief executive Laura Tyler.
“What makes Vareš so exciting is that it is at the beginning of its journey, with significant growth ahead.
“This transaction brings together complementary strengths to create a dynamic and diversified mining company with meaningful scale.”
Together, the new company will be ‘well placed’ to pursue other value-creating opportunities in the region, she added.
“This transaction presents a compelling opportunity to be part of a transformative and long-term success story - one we fully endorse and recommend to all our stakeholders," Tyler added.
In London, Adriatic shares (which are up around 30% over the past month) had moved up 2.3% to 246.5p, valuing the London-listed equity at around £850 million.