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| Contango Silver Gold |
Strategic Acquisition Strengthens Contango’s Precious Metals Assets
Contango Ore agreed to acquire Canada’s Dolly Varden Silver for $812 million, creating Contango Silver & Gold. As a result, the combined company gains access to high-grade silver and gold projects in British Columbia’s Golden Triangle. Shareholders of Dolly Varden will receive 0.1652 Contango shares per Dolly Varden share. The transaction is expected to close between late February and early March 2026.
The deal provides Contango with $100 million cash, $15 million debt, and annual cash flow from Alaska’s Manh Choh gold mine, operated jointly with Kinross Gold. Consequently, the company secures funding to advance Lucky Shot, Johnson Tract, and Kitsault Valley projects. The acquisition positions Contango for long-term growth and increases exposure to high-grade silver resources.
Resource Potential and Shareholder Implications
Kitsault Valley hosts 3.4 million indicated tonnes at 299.8 grams silver per tonne and 1.2 million inferred tonnes at 277 grams per tonne. Homestake Ridge holds 736,000 indicated tonnes grading 74.8 grams silver and 7.02 grams gold. Meanwhile, inferred resources include 5.55 million tonnes grading 100 grams silver and 4.58 grams gold. Historically, Dolly Varden produced over 20 million ounces of silver, making it one of Canada’s richest silver regions. Therefore, the combined company will have robust exploration and production potential.
The merger requires approval from two-thirds of Dolly Varden shareholders and a majority of Contango shareholders. Voting support agreements cover 22% of shares from both firms. After closing, Contango and Dolly Varden shareholders will each own approximately 50% of the combined company. Executive leadership includes Rick Van Nieuwenhuyse as CEO and Shawn Khunkhun as president, with offices in Fairbanks and Vancouver.
ScrapInsight Commentary
Contango’s acquisition of Dolly Varden strengthens North American silver and gold supply portfolios amid rising precious metals demand. The deal enhances funding for high-grade projects and positions the company strategically for production growth. Market watchers may expect improved shareholder value and increased exploration-driven output.
