[Video Enhanced] Dolly Varden Silver Proposes Merger with Alaska Gold Producer

Core Viewpoint - Dolly Varden Silver announced a proposed merger with Contango ORE, aiming to create a new high-grade silver and gold producer named Contango Silver & Gold, which will have a 20-year development pipeline across Alaska and British Columbia [6][10]. Company Overview - Dolly Varden Silver has expanded its valuation from $20 million to approximately C$560 million over the last five years, supported by aggressive drilling programs and strategic acquisitions [1][2]. - Contango ORE, listed on NYSE American, focuses on gold exploration and production in Alaska, holding a 30% interest in the Manh Choh Gold Project, which produced 173,400 gold ounces in the first nine months of 2025 [3][4]. Merger Details - Upon completion of the merger, existing shareholders of both companies will own approximately 50% of the new entity, MergeCo, which will be renamed Contango Silver & Gold Inc. [10]. - The merger is expected to enhance the combined company's market capitalization to approximately US$812 million (C$1.1 billion) and improve trading liquidity and institutional ownership [14][16]. Strategic Rationale - The merger aims to create a North American-focused multi-stage silver and gold company with a diverse asset portfolio, including advanced-stage exploration and current production [11][12]. - The combined entity will leverage high-grade projects such as the Lucky Shot and Johnson Tract in Alaska, and the Kitsault Valley project in British Columbia, all strategically located near existing infrastructure [12][13]. Financial Position - The combined companies will have over US$100 million in cash and only US$15 million in debt, with annual cash flow from the Manh Choh gold mine [12][14]. - The merger is expected to provide a solid financial foundation for growth and long-term value creation for shareholders [11][17]. Leadership and Management - The new company will be led by Rick Van Nieuwenhuyse as CEO, Shawn Khunkhun as President, and Mike Clark as Executive Vice President and CFO [10]. - The leadership team is expected to bring operational expertise to transition projects from exploration to production effectively [7][11]. Exploration Potential - The merger is anticipated to enhance exploration capabilities, with a strong focus on high-grade mineral inventory and a track record of successful exploration across the combined portfolio [12][13]. - The integration of Dolly Varden's exploration team with Contango's operational expertise is expected to drive resource expansion and discovery opportunities [7][11].