Contango ORE, Inc. (NYSE American: CTGO) and Dolly Varden Silver Corporation (TSXV: DV) announced a merger‑of‑equals that will create a new public company, Contango Silver & Gold Inc. The transaction will combine Contango’s cash‑flowing Manh Choh gold mine in Alaska with Dolly Varden’s high‑grade Kitsault Valley silver project in British Columbia and Contango’s Johnson Tract gold project in Alaska.
The merger is structured on a 50/50 basis for existing shareholders. For every Dolly Varden share, shareholders will receive 0.1652 Contango shares, resulting in an implied equity value of approximately $812 million for the combined entity. The parties expect the transaction to close in late February or early March 2026 after regulatory and shareholder approvals.
Strategically, the deal brings together a producing asset that delivers steady cash flow with two development‑stage projects that have high grades and a proven Direct‑Ship‑Ore (DSO) model. The DSO approach allows ore to be shipped directly to processing facilities, reducing capital intensity and accelerating time to production. By leveraging Manh Choh’s cash flow, the new company can fund the development of Kitsault Valley and Johnson Tract without relying on external debt, positioning the combined entity for rapid growth in North America.
Financially, the combined balance sheet will feature more than $100 million in cash and only $15 million in debt, giving the new company a strong liquidity cushion and a low leverage profile. This capital structure will support ongoing exploration, development, and potential acquisitions while maintaining flexibility to respond to market conditions.
Leadership of the new company will be led by Contango’s President and CEO Rick Van Nieuwenhuyse, Dolly Varden’s President and CEO Shawn Khunkhun, and Contango’s Executive Vice President and CFO Mike Clark. A seven‑member board will oversee governance, combining expertise from both legacy companies.
Management highlighted the synergies and capital efficiency of the merger. Van Nieuwenhuyse noted that “the cash flow from Manh Choh will provide non‑dilutive funding to advance the high‑grade Kitsault Valley and Johnson Tract projects, while the DSO model will keep capital expenditures low.” Khunkhun added that “the merger creates a unique, multi‑asset platform that will accelerate silver and gold production across the United States and Canada.”
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