Contango Ore Strikes $812M Deal to Acquire Dolly Varden Silver

Contango Ore has reached an agreement to acquire Dolly Varden Silver in a deal valued at $812 million, creating a mid-tier silver and gold producer with assets in Alaska and British Columbia’s Golden Triangle.

Dolly Varden shareholders will receive 0.1652 Contango shares for each of their own, with the transaction expected to close in late February or early March. The new company, Contango Silver & Gold, will hold $100 million in cash, $15 million in debt, and benefit from steady cash flow from the Manh Choh gold mine in Alaska, a joint venture with Kinross Gold.

Contango’s CEO Rick Van Nieuwenhuyse said the merger provides non-dilutive funding to advance projects in Alaska and British Columbia, while Dolly Varden’s land position in the Golden Triangle offers significant growth potential.

Dolly Varden shares fell 6.6% in Toronto following the announcement, while Contango dropped 2% in New York. The deal requires shareholder approval, with 22% of both companies’ investors already committed. Van Nieuwenhuyse will lead the combined entity, with Dolly Varden’s Shawn Khunkhun as president and Contango’s Mike Clark as CFO.

The Kitsault Valley project adds substantial silver resources, complementing Dolly Varden’s Homestake Ridge property and Contango’s stake in Manh Choh, one of the world’s highest-grade open-pit mines. Together, the companies aim to build a stronger platform for growth in North American precious metals.