Contango Silver & Gold (NYSE: CTGO) has finalized its merger with Dolly Varden Silver (TSXV: DV), creating a new mid-tier precious metals contender with a footprint spanning Alaska and British Columbia’s Golden Triangle.
The deal sees Dolly Varden acquired by a subsidiary of Contango. Under the terms of the agreement, Dolly Varden shareholders received 0.1652 of a Contango share for each share held. The newly combined entity will continue to trade under the name Contango Silver & Gold Inc.
The tie-up marries Contango’s cash-generating Manh Choh gold mine in Alaska with Dolly Varden’s Kitsault Valley project, a high-grade silver and gold site in one of the world’s most watched mineral belts. The combined balance sheet now boasts over $100 million in cash and minimal debt, providing the company with significant dry powder for its next phase of growth.
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“This merger marks the start of an exciting new chapter,” said Rick Van Nieuwenhuyse, CEO of the combined company. He noted that the asset mix, which ranges from active production to district-scale exploration, positions the firm to benefit from both immediate cash flow and long-term exploration upside.
The leadership team reflects a split between the two predecessors. Van Nieuwenhuyse remains at the helm as CEO, while former Dolly Varden chief Shawn Khunkhun takes on the role of President. The board has also been restructured to include directors from both camps.
Following the close, Dolly Varden’s shares are scheduled to be delisted from the TSX Venture Exchange as of Friday, while shares will be delisted from the NYSE American on April 6. Meanwhile, Contango has applied to list its shares on the Toronto Stock Exchange to maintain a strong presence in the Canadian market alongside its existing NYSE American listing.
Contango Silver & Gold last traded at $17.88 on the NYSE.
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