Core Viewpoint - Contango ORE and Dolly Varden Silver have announced a merger to create a new North American high-grade, mid-tier silver and gold producer, referred to as MergeCo, which will leverage their complementary asset portfolios and enhance shareholder value [2][4]. Transaction Overview - The merger will be executed on a merger-of-equals basis, with existing shareholders of both companies owning approximately 50% of MergeCo on a fully diluted basis [3][15]. - MergeCo is expected to be renamed Contango Silver & Gold Inc. and will be led by a combined management team from both companies [3][11]. Strategic Rationale - The merger aims to create a well-funded North American asset portfolio, including the cash-flowing Manh Choh gold mine in Alaska and several high-grade silver and gold projects in British Columbia and Alaska [2][4]. - The combined entity will focus on low-capex Direct Shipping Ore (DSO) projects, leveraging existing infrastructure for development [10]. Financial Position - MergeCo will have over US$100 million in cash on hand, only US$15 million in debt, and significant annual cash flow from the Manh Choh gold mine [10]. - The combined market capitalization is expected to be approximately US$812 million (C$1.1 billion), enhancing trading liquidity and institutional ownership [10]. Asset Highlights - Key assets include the Manh Choh Mine, Lucky Shot Mine, Johnson Tract, and Kitsault Valley, all strategically located to support high-grade development [6][7][9]. - The Manh Choh Mine is noted for its high-grade reserves, with gold reserves estimated at approximately 8 grams per tonne and production of 173,400 gold ounces in the first nine months of 2025 [10][19]. Governance and Leadership - The board of directors for MergeCo will include members from both Contango and Dolly Varden, ensuring a diverse governance structure [3][11]. - Leadership will be provided by Rick Van Nieuwenhuyse as CEO, Shawn Khunkhun as President, and Mike Clark as Executive Vice President and CFO [3][11]. Regulatory and Approval Process - The transaction is subject to court approval and requires the affirmative vote of shareholders from both companies at special meetings expected in February 2026 [16][18]. - Major shareholders from both companies, holding approximately 22% of the outstanding shares, have entered into voting support agreements in favor of the merger [17].