Contango Ore Merges with Dolly Varden to Form Contango Silver & Gold Inc.

Contango Ore and Dolly Varden Forge New Mining Powerhouse

Contango ORE, Inc. and Dolly Varden Silver Corporation announce a merger that will reshape the landscape of North American mining. This merger-of-equals arrangement, structured under the Business Corporations Act of British Columbia, aims to create a new entity, referred to as "MergeCo." By combining their respective resources, the two companies intend to offer a diverse portfolio of assets that includes the cash-generating Manh Choh gold mine in Alaska and various high-grade silver and gold projects located in British Columbia and Alaska, particularly the Kitsault Valley and Johnson Tract projects. This strategic alignment not only enhances the operational scale of both companies but also provides significant growth opportunities in a favorable market for precious metals.

Upon the merger's completion, the ownership structure will see shareholders from both Contango and Dolly Varden each holding approximately 50% of MergeCo on a fully diluted basis. The new company is projected to be named Contango Silver & Gold Inc., with a leadership team that includes industry veterans Rick Van Nieuwenhuyse as CEO, Shawn Khunkhun as President, and Mike Clark as Executive Vice President and CFO. The Board of Directors will be chaired by Clynt Nauman, featuring experienced members such as Brad Juneau and Darren Devine. This leadership structure is designed to leverage their collective expertise, fostering a robust governance framework that can navigate the complexities of the mining sector.

Rick Van Nieuwenhuyse expresses optimism regarding the merger, emphasizing the complementary nature of the asset portfolios. He highlights the significant cash flow from the Manh Choh Gold Mine as a keystone for funding the development of other high-grade projects within the merged entity. The strategic combination aims to capitalize on the strengths and synergies of both companies, with a focused objective of enhancing shareholder value while advancing their mining prospects. As the global demand for gold and silver continues to rise, Contango and Dolly Varden are well-positioned to capitalize on their combined resources and expertise.

In addition to its immediate benefits, the merger is a strategic move that reflects the industry's ongoing consolidation trends. As companies seek to optimize operations and maximize resource efficiency, mergers like this one can lead to more sustainable business practices. The newly formed Contango Silver & Gold Inc. is set to not only bolster its asset base but also create a formidable entity that can better navigate the dynamic challenges of the mining sector.

As both companies prepare for the transition, stakeholders and analysts will be closely monitoring the merger's implications for the broader mining industry. The combination of Contango and Dolly Varden signifies a proactive approach to growth, reinforcing their commitment to advancing high-grade projects amidst evolving market conditions.