Contango ORE (NYSE:CTGO) and Dolly Varden Silver Corporation (TSXV:DV) have agreed to merge in an all-stock deal that would create a new mid-tier North American precious-metals company, uniting producing and high-grade development assets in Alaska and British Columbia.
Shareholders of each firm will own roughly 50 percent of the new entity, which is expected to be renamed Contango Silver & Gold and listed on the NYSE American. A separate listing application is planned for the Toronto Stock Exchange.
The combined company, informally referred to as “MergeCo,” will be anchored by the cash-flowing Manh Choh gold mine in Alaska and a slate of high-grade silver and gold projects in the Golden Triangle and south-central Alaska.
Clynt Nauman will lead the board as its Chairman, Rick Van Nieuwenhuyse serving as CEO, Shawn Khunkhun as president, and Mike Clark as executive vice president and CFO.
Van Nieuwenhuyse said the combination is designed to take advantage of an unusually strong pricing environment for precious metals.
“This merger is an exciting transaction for both Contango and Dolly Varden shareholders given the complementary and synergistic nature of our North American asset portfolios,” he said. He highlighted that Manh Choh’s cash flow provides “a source of non-dilutive funding to advance development” of Lucky Shot, Johnson Tract and Kitsault Valley.
Meanwhile, Khunkhun added that the combined platform would be Canada and US-centric and will position the company for aggressive exploration and potential acquisitions.
For the new company, higher silver prices enhance the attractiveness of the Kitsault Valley project in British Columbia, where Dolly Varden recently completed more than 56,000 meters of drilling.
Early results included 1,422 grams per metric ton silver over 21.70 meters at the Wolf Vein and high-grade gold intercepts at Homestake Silver. Historic production from the district exceeds 20 million ounces.
In Alaska, Contango brings three advanced projects. Manh Choh, operated by Kinross Gold (TSX:K,NYSE:KGC,OTC:KGCRF), produced 173,400 ounces of gold in the first nine months of 2025, generating US$87 million in distributions to Contango.
The Lucky Shot project, permitted and undergoing a major drill program, is targeting a multi-hundred-thousand-ounce resource.
Johnson Tract, a gold-silver-zinc project recently accepted for FAST-41 federal permitting, carries an Initial Assessment outlining a US$615 million NPV at US$4,000 gold.
The timing is notable as silver has climbed to its highest price on record. The metal broke its previous all-time high in October and repeatedly tested resistance through the fall before decisively surpassing US$54 on November 28.
Silver later surged again following the US Federal Reserve’s December rate cut, with its latest record of US$64.31 set on December 11.
Analysts attribute the rally partially to shifting macro conditions, including renewed expectations of quantitative easing after the Fed signaled it would begin buying short-term Treasuries.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
