The KE Report Contango ORE & Dolly Varden Silver – Merger Breakdown & Growth Vision
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.
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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