In this KE Report update, we speak with Rick Van Nieuwenhuyse, President & CEO of Contango ORE (NYSE American: CTGO), and Shawn Khunkhun, President & CEO of Dolly Varden Silver (NYSE American: DVS, TSX-V: DV), to outline the strategic merger creating a new high-grade gold–silver producer.
- Why the merger works
Contango brings strong cash flow (≈US$100M/yr) from the Mahn Choh DSO operation with Kinross, while Dolly Varden contributes a high-grade silver–gold portfolio in BC’s Golden Triangle. - Development pipeline
Lucky Shot remains next in line for production using the DSO model, followed by the high-grade Johnson Tract project. Dolly Varden’s Wolf, Homestake, and broader Kitsault Valley assets gain funding and technical depth to accelerate exploration. - DSO strategy advantages
High grade, small footprint, no mill or tailings required, and access to existing underutilized processing facilities support a scalable, low-capex production approach. - Valuation opportunity
The combined entity is expected to begin around 0.5x NAV, with potential re-rating as size, liquidity, cash flow, and index inclusion improve.
Click here to learn more about the merger.
Also please share your thoughts on the merger in the comments or email Shad and I at Fleck@kereport.com and Shad@kereport.com.
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