Adriatic Metals (ADT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition creates a premier mining group with enhanced production, reserves, and a diversified asset base across Europe and South America.

• Vares mine aligns with existing regional operations and leverages decades of local experience.

• Adriatic shareholders gain exposure to a multi-asset, jurisdictional growth platform and benefit from DPM's capital allocation and dividend policy.

• The deal accelerates value realization for Adriatic shareholders, reducing operational risk and market volatility.

Financial terms and conditions

• Adriatic shareholders receive 0.159 DPM shares and GBP 0.93 in cash per share, valuing each share at 268 pence and the company at US$1.251 billion.

• The terms represent a 50.5% premium to Adriatic's LSE closing price on 19 May 2025 and a 47.8% premium to its ASX closing price on 20 May 2025.

• Shareholders can elect all shares, all cash, or a combination, subject to proration and a mix and match facility.

• Adriatic shareholders will own about 25% of the combined entity; DPM shareholders will hold 75%.

• DPM will fund the cash portion from existing resources; no new debt is required.

Synergies and expected cost savings

• Operational synergies expected from combining Vares with DPM's expertise, financial strength, and optimized capital allocation.

• Optimization opportunities include ore sorting and reduced mine waste transport.

• Enhanced exploration potential and resource extension at Vares and nearby deposits.

• Integration of Adriatic's mining personnel is expected to de-risk DPM's Čoka Rakita Project.