Adriatic Metals (ASX:ADT) confirmed it is in discussions with Canada-based gold mining company Dundee Precious Metals over a possible acquisition of the company's entire issued and to-be-issued share capital, according to a Wednesday filing with the Australian bourse.

The company has granted Dundee access to limited due diligence, and it has until June 17 to declare an intention to make an offer, the filing said.

An offer period has now started, and shareholders are advised that no action is required at this time.

Shares of the company rose 24% and recently hit an all-time high.