Contango Ore (CTGO) entered a merger agreement on December 8, 2025, to acquire Dolly Varden Silver Corporation (DVS) in an all-stock deal valued at $495.3 million.
Contango will acquire all of the issued and outstanding common shares of Dolly Varden at an exchange ratio of 0.1652 of a share of voting common stock of Contango for each DV Share held. The exchange ratio values Dolly Varden at about $4.33 per share, representing a discount of 7.45% from the stock’s last close.
Dolly Varden is a mineral exploration company focused on advancing its high-grade Kitsault Valley silver-gold project in British Columbia’s Golden Triangle, which includes the Dolly Varden and Homestake Ridge deposits and several past-producing silver mines.
Contango Ore is a U.S.-based mineral exploration company focused on gold and related metals in Alaska, with interests in the Manh Choh project through the Peak Gold JV and several additional exploration properties across the state.
The merger will create a new MergerCo that would include the Manh Choh gold mine in Alaska, along with several high-grade silver and gold projects in British Columbia and Alaska, such as Kitsault Valley and Johnson Tract.
Existing Contango and Dolly Varden shareholders will each own roughly 50% of MergeCo’s outstanding shares.
MergeCo will be renamed Contango Silver & Gold Inc. It will be led by Contango CEO Rick Van Nieuwenhuyse as CEO, Dolly Varden CEO Shawn Khunkhun as President, and Mike Clark as CFO.
The MergeCo Board will include Clynt Nauman as Chairman, along with Brad Juneau, Darren Devine, Mike Cinnamond, Tim Clark, Rick Van Nieuwenhuyse, and Shawn Khunkhun.
The main office will be in Fairbanks, Alaska, with a second office in Vancouver, British Columbia.
The deal is expected to close in late February or early March 2026.
Haywood Securities served as the financial advisor to Dolly Varden, and Stikeman Elliott and Dorsey & Whitney provided legal advice. Canaccord Genuity advised Contango on financial matters, while Blake, Cassels & Graydon and Holland & Knight served as its legal counsel.
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Editor’s Note: Baranjot Kaur contributed to this article