Adriatic Metals (ADT AU): 13th August Vote On Dundee Metals (DPM CN)'s Offer

• Back on the 13th June, dual-listed silver play Adriatic Metals PLC (ADT AU) announced a cash/scrip Offer from Dundee Precious Metals (DPM CN), with an implied Offer price of A$5.56/share, a

• Dundee is offering 0.1590 new Dundee shares per ADT share, plus 93 pence in cash. Roughly a 35:65 cash/scrip split for the Aussie-listed line. And a 47.8% premium to undisturbed.

• As Adriatic is incorporated in the UK, the Offer is being done by a UK Scheme. The Scheme Doc is now out, with a shareholder vote on the 13th August.

The Trade:

• Trading super tight at a 0.66% gross spread.

• This is a cross-border trade. If inclined, look to short Dundee late in the Canadian day, and buy Adriatic (the Aussie line) early in the AU day.

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The NEW News

• The Scheme Document is out.

• Adriatic's court meeting is the 13th August. Dundee's shareholder vote (simple majority) is the same day.

• The timeline is as follows.

  • An exact timeline for the listing of new DPM shares is only indicative. Perhaps late Sept (depending on Bosnian competition clearance)?

• RBC Capital Markets, the advisor to Adriatic, reckons terms are fair and reasonable.