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

Contango ORE and Dolly Varden Silver Forge Strategic Merger to Enhance Mining Portfolio

Contango ORE, Inc. and Dolly Varden Silver Corporation announce a merger-of-equals arrangement aimed at creating a robust entity, referred to as "MergeCo." This strategic move is set to enhance their operational capabilities and market position in the North American mining sector. The merger, structured under the British Columbia Business Corporations Act, allows both companies to pool their resources effectively. Investors will gain access to a diversified portfolio that includes the cash-generating Manh Choh gold mine in Alaska, alongside a suite of high-grade silver and gold projects in British Columbia and Alaska, notably the Kitsault Valley and Johnson Tract projects.

Upon completion, shareholders from both companies will each hold approximately 50% of MergeCo on a fully diluted basis, establishing a balanced ownership structure. The new entity is expected to be named Contango Silver & Gold Inc. and will be led by a seasoned management team. Rick Van Nieuwenhuyse, who is set to become the CEO, expresses enthusiasm about the merger's potential, citing the complementary nature of the asset portfolios. The Manh Choh Gold Mine is expected to generate significant cash flow, which will be instrumental in funding the development of other high-grade projects within the merged company’s portfolio.

This strategic combination is not merely aimed at consolidating assets but also at leveraging the strengths of both companies to maximize shareholder value. The merger comes at a favorable time for gold and silver pricing, thus positioning the new entity to capitalize on market conditions. The leadership team, including President Shawn Khunkhun and Executive Vice President Mike Clark, alongside Chairman Clynt Nauman, aims to drive growth and development opportunities across their projects, reinforcing their commitment to advancing operations in the competitive mining landscape.

In a related development, the merger signifies a trend in the mining industry where companies seek to consolidate to bolster their asset bases and enhance operational efficiencies. By combining resources, Contango and Dolly Varden aim to solidify their market presence and accelerate the progression of their high-grade projects. Investors and stakeholders can anticipate a redefined operational strategy that emphasizes sustainable growth and profitability in the evolving mining sector.

Overall, the merger of Contango ORE and Dolly Varden Silver represents a significant shift in the mining landscape, with promising implications for the future of both companies and their stakeholders.