Contango Ore Acquires Dolly Varden in $812M Silver and Gold Deal

Contango Ore Expands with Dolly Varden Acquisition

Contango Ore (NYSE-A: CTGO) agreed to acquire Dolly Varden Silver (TSX-V: DV; NYSE-A: DVS) in an $812 million deal. The merger will form Contango Silver & Gold, a mid-tier producer with high-grade assets in British Columbia’s Golden Triangle and Alaska. Dolly Varden shareholders will receive 0.1652 Contango shares per Dolly Varden share. The transaction is expected to close by late February or early March 2026.

The combined company will hold $100 million in cash, $15 million in debt, and benefit from annual cash flow from Alaska’s Manh Choh gold mine, a joint venture with Kinross Gold (TSX: K; NYSE: KGC). The deal provides Contango strong exposure to silver through Dolly Varden’s Kitsault Valley project and positions it for growth in North American precious metals markets.

Strategic Assets and Shareholder Structure

The Golden Triangle land holdings give Contango significant upside potential. Dolly Varden’s Kitsault Valley hosts 32.9 million ounces of indicated silver and 11.4 million ounces inferred silver. Homestake Ridge adds 1.8 million ounces of indicated silver and 17.83 million ounces inferred silver, alongside substantial gold resources. Manh Choh remains one of the world’s highest-grade open-pit gold mines, generating reliable cash flow to support development.

The merger requires approval from two-thirds of Dolly Varden shareholders and a majority of Contango voters. Existing shareholders of both companies will each hold approximately 50% of the combined entity. Voting support agreements already cover 22% of outstanding shares for each company. Rick Van Nieuwenhuyse will lead the new company as CEO, with Dolly Varden’s Shawn Khunkhun serving as president.

SuperMetalPrice Commentary:

The Contango-Dolly Varden deal strengthens North American silver and gold production amid rising demand for high-grade assets. Kitsault Valley and Homestake Ridge provide both historical output and development upside. Investors should monitor resource updates and Alaska mine cash flows as catalysts for future value. The merger demonstrates strategic consolidation in high-quality mining jurisdictions.