Contango and Dolly Varden Unite to create a Nnew North American silver & gold growth Platform

A transformative merger in the North American precious-metals space was announced today as Contango ORE, Inc. and Dolly Varden Silver Corporation confirmed a merger-of equals that will create a new, well capitalized, multi-asset silver and gold company focused exclusively on the United States and Canada.

Once the transaction closes, shareholders of both companies will each own approximately 50% of the combined entity, which is expected to be renamed Contango Silver & Gold Inc. The new company will unite a rare combination of current gold production and high-grade silver-gold development projects, anchored by the producing Manh Choh Gold Mine in Alaska and complemented by the Kitsault Valley, Johnson Tract, and Lucky Shot projects.

The strategic outcome

More than US$100 million in combined cash, only US$15 million in debt, ongoing non-dilutive cash flow from Manh Choh, a combined market capitalization of approximately US$812 million (C$1.1 billion), and a shared focus on low-capex Direct Shipping Ore (DSO) development.

Leadership of the new company

• Rick Van Nieuwenhuyse as Chief Executive Officer,
• Shawn Khunkhun as President,
• Mike Clark as Executive Vice President & Chief Financial Officer,
• Clynt Nauman serving as Chairman of the Board.

Executives statements

Commenting on the strategic importance of the transaction, Rick Van Nieuwenhuyse stated: “With the Manh Choh Gold Mine providing significant cash flows in a strong gold and silver price environment, the combined company will have a source of non-dilutive funding to advance development of its high-grade Lucky Shot and Johnson Tract projects in Alaska and Kitsault Valley project in British Columbia.(…)”

From the Dolly Varden side, Shawn Khunkhun highlighted the step change created by the merger: “The merger represents a step-change for the company, adding production and combining an exceptional portfolio of projects with the potential for high-grade precious-metal development. The combined company is poised to become a unique, multi-asset platform for silver and gold production, focused exclusively on the United States and Canada.”

Outcomes

The transaction has received unanimous approval from both boards of directors, supported by fairness opinions from Canaccord Genuity, Haywood Securities, and Raymond James. Directors, officers, and major shareholders representing approximately 22% of each company’s outstanding shares have already committed to vote in favor of the deal. Closing is targeted for late February to early March 2026, subject to court, shareholder, and regulatory approvals.

This merger is more than a corporate combination it creates a new North American precious-metals champion, uniting cash-flowing production, top-tier exploration assets, and a disciplined low-capex growth strategy aimed at delivering long-term value for shareholders.