Contango Silver & Gold Inc. Completes Merger with Dolly Varden: Key Investor Insights

Overview

Contango Silver & Gold Inc. (NYSE American: CTGO) and Dolly Varden Silver Corporation have announced the completion of their previously disclosed merger, creating a new mid-tier North American precious metals producer. The new entity, Contango Silver & Gold Inc., combines high-grade assets spanning Alaska and British Columbia, following all required shareholder and court approvals.

Key Points of the Merger

• All Dolly Varden shares acquired: Dolly Varden common shares have been acquired by 1566004 B.C. Ltd., a wholly owned subsidiary of Contango, under a statutory plan of arrangement.
• Exchange ratio: Each Dolly Varden common share has been exchanged for 0.1652 of a Contango voting common stock or, for eligible holders, 0.1652 of an exchangeable share in Acquireco. Exchangeable Shares can be swapped for Contango Shares on a one-for-one basis, subject to adjustment.
• Issued securities: Contango issued 13,686,278 Contango Shares and replacement options for 417,048 Contango Shares. Acquireco issued 1,597,301 Exchangeable Shares.
• Post-merger share count: The total number of outstanding Contango Shares is 30,507,599 (excludes Exchangeable Shares).
• Listing update: Contango has submitted an application to list Contango Shares on the Toronto Stock Exchange (TSX). The listing is pending approval and satisfaction of TSX listing requirements.
• Dolly Varden de-listing: Dolly Varden shares are expected to be delisted from the TSX Venture Exchange at close of trading on March 27, 2026, and from the NYSE American on April 6, 2026. Dolly Varden will seek to cease being a reporting issuer in Canada thereafter.
• Leadership: The combined company is led by CEO Rick Van Nieuwenhuyse, President Shawn Khunkhun, and Executive VP & CFO Mike Clark. The Board of Directors features a balanced representation from both companies and includes Clynt Nauman (Chairman), Brad Juneau, Darren Devine, Mike Cinnamond, Tim Clark, Rick Van Nieuwenhuyse, and Shawn Khunkhun.
• Shareholder split: Ownership is split 50/50 between Contango and former Dolly Varden shareholders.
• Financial strength: The combined entity holds more than US\$100 million in cash and minimal debt, creating a robust platform for growth.
• Asset portfolio: The merger brings together Contango’s cash-flowing Manh Choh Gold Mine, advanced Lucky Shot and Johnson Tract projects in Alaska, and Dolly Varden’s high-grade Kitsault Valley silver-gold project in British Columbia’s Golden Triangle.
• Strategic rationale: The merger positions Contango Silver & Gold as a uniquely positioned, gold and silver-focused company with strong production base, significant growth potential, and exceptional exploration upside.
• Conference call: Contango will host a conference call and webcast on March 26, 2026 at 1:00pm EST (10:00am PST). Webcast details: https://6ix.com/event/introducing-contango-silver-and-gold.

Shareholder Information & Price Sensitive Elements

• Exchange ratio and ownership split: The precise exchange ratio and 50/50 shareholder split is critical for existing and new investors, as it impacts voting power and future value realization.
• TSX listing application: Pending approval for listing on the Toronto Stock Exchange is a major event. Successful listing could improve liquidity and broaden the investor base, potentially impacting share price.
• De-listing of Dolly Varden: The removal of Dolly Varden shares from TSX-V and NYSE American, and Dolly Varden’s application to cease being a reporting issuer, are price-sensitive events. Investors should be aware of any changes in trading or reporting status.
• Financial position: The combined entity’s strong cash position (>US\$100 million) and minimal debt are positive for growth and may attract institutional investors.
• Asset portfolio: The merger provides exposure to both cash-generating and high-potential exploration assets, which could significantly affect future share value depending on operational success and commodity prices.
• Leadership team: Deep industry expertise and balanced board representation may increase investor confidence in execution and strategy.

Forward-Looking Statements & Risks

The press release contains forward-looking statements regarding anticipated benefits of the merger, Contango’s operational plans, the timing of de-listings and new listings, and future results. Risks include operational challenges, uncertainties in exploration, commodity price volatility, estimates and projections, financing availability, and regulatory changes. Investors should note that forward-looking statements are not guarantees of future performance.

About Contango Silver & Gold Inc.

• Manh Choh Gold Mine: Contango holds a 30% interest in the Peak Gold JV, leasing 675,000 acres for exploration and development. The remaining 70% is held by KG Mining (Alaska), Inc., a Kinross Gold subsidiary.
• Johnson Tract: Lease covers 21,000 acres near tidewater, 125 miles southwest of Anchorage, Alaska.
• Lucky Shot: Lease covers 8,600 acres in the Willow Mining District, 75 miles north of Anchorage, Alaska.
• Additional Alaska assets: Rights to 145,000 acres of State of Alaska mining claims and 11,700 acres of upland mining leases.
• Kitsault Valley, BC: Mineral tenures covering 247,000 acres (100,000 ha) in the Golden Triangle.
• For more information, visit www.contangoore.com.

Investor Actions

• Monitor Contango’s progress on TSX listing; successful approval may boost share liquidity and price.
• Note the upcoming de-listing dates for Dolly Varden shares and potential changes in reporting status.
• Review Contango’s special meeting and Dolly Varden’s management circular for details on the merger terms.
• Participate in the investor conference call on March 26, 2026, for further insights from management.

Disclaimer

This article is for informational purposes only and does not constitute investment advice, an offer to buy or sell any securities, or a recommendation. The information herein is based on official company announcements and may contain forward-looking statements subject to risks and uncertainties. Investors should consult their financial advisors and review company filings before making investment decisions.

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