Canadian miner Dundee Precious Metals has agreed to purchase UK-based Adriatic Metals for US$1.3 billion, adding the underground Vareš silver operation in Bosnia and Herzegovina to its portfolio.
“Vareš 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 David Rae, president and chief executive officer of Dundee Precious Metals.
“We are well-positioned to leverage our expertise in underground mining, our regional presence, successful track record of building and ramping up new mines, as well as our strong financial position to further optimize the operation and realize Vareš’ full value potential, based on our analysis.”
Vareš is a precious metals-dominant mine with an offsite processing facility and prospective 4,400-hectare land package, located 50 kilometers north of Sarajevo. Since announcing first concentration production last year, it has been ramping up to nameplate processing capacity of 800,000 tonnes per annum, which is expected later this year.
Source: Dundee Precious Metals