Adriatic Metals confirmed recently that it was in discussions with TSX-listed Dundee Precious Metals regarding a potential takeover offer for the company.
The announcement follows recent media speculation, with Adriatic stating that it had granted Dundee limited due diligence access to facilitate the talks. However, both companies cautioned that there is no certainty a formal offer will be made or what the terms of such an offer might be.
“Discussions remain ongoing and there can be no certainty that any firm offer will be made,” Adriatic said in a statement. Shareholders were advised to take no action at this stage.
Dundee also confirmed the discussions in a parallel statement, noting that the announcement did not constitute a firm intention to make an offer the UK Takeover Code, nor did it impose any obligation on Dundee to do so.
According to Sky News, the discussions could value the UK-based company at about £700-million, citing banking sources.
Adriatic’s flagship asset is the Vareš silver operation in Bosnia and Herzegovina, which produces silver/lead and zinc concentrates. The operation has drawn attention for its high-grade polymetallic resources and strategic location within Europe.