Silver Explorer CEO Calls 2025 a 'Defining Year' for Co. After Merger Breakthrough

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

In a year-end email to shareholders, Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) President and Chief Executive Officer Shawn Khunkhun looked back on what he called a "defining year" for the company that transformed it "financially, operationally, and strategically."

Earlier this month, the company announced entering into an arrangement agreement with Contango ORE Inc (CTGO:NYSEA) to merge on equal terms. The merger provides investors with a unique opportunity to benefit from a well-capitalized North American asset portfolio that includes the cash-generating high-grade Manh Choh gold mine in Alaska and several high-grade silver and gold projects in British Columbia and Alaska, such as the Kitsault Valley and Johnson Tract projects.

Khunkhun noted "the progress we made over the past year is reflected clearly in our market performance" as Dolly Varden Silver’s market capitalization grew from approximately CA$304 million in 2024 to CA$590 million in 2025. Since uplisting to the NYSE American index on April 21 the company's share price has appreciated more than 62%, "significantly expanding our U.S. investor base, improving liquidity, and increasing institutional visibility," he said.

"This milestone marked an important step in positioning Dolly Varden Silver as a North American precious metals company with the scale and profile to attract long-term capital," Khunkhun wrote.

Dolly Varden entered this growth phase with discipline and ensured it had the capital to execute and raised CA$63 million in 2025, ending the year with a cash position exceeding CA$60 million, the letter said.

"This strong treasury allows us to aggressively advance exploration, integrate acquisitions, and remain opportunistic as we continue to evaluate accretive growth opportunities," he wrote.

Once the merger is finalized, current shareholders of Contango and Dolly Varden will each own about 50% of the outstanding shares of the merged company, or MergeCo, on a fully diluted in-the-money basis, Dolly Varden has said. MergeCo is set to be renamed Contango Silver & Gold Inc., with Contango President and CEO Rick Van Nieuwenhuyse as CEO, Khunkhun as president, and Mike Clark as executive vice president and CFO.

Prospective Land Holdings Increased More Than Six-Fold

According to the letter, one of the company's most impactful achievements of the year was the expansion of its land position in the southern Golden Triangle: Dolly Varden Silver increased its prospective land holdings more than six-fold, from approximately 15,000 hectares to over 100,000 hectares. Strategic acquisitions included the Kinskuch, Theia, Porter, BA, Red Cliff, and American Creek properties.

"The company now controls a dominant land position covering more than 50 kilometers of the highly prospective Hazelton Formation, including extensive coverage of the well-known 'Red Line' geological marker," the letter said. "The district hosts five past-producing mines, highlighting the region's proven high-grade endowment."

Khunkhun continued, "These acquisitions transformed Dolly Varden Silver into a true district-scale silver company and created one of the most compelling exploration land packages in the Golden Triangle."

The CEO also noted that exploration remained a core driver of value throughout the year for the company, as it completed a 56,131-meter drill program, one of the largest and most ambitious in its history.

The program delivered exceptional high-grade results, including: 1,422 grams per tonne (g/t) silver over 21.7 meters, including 10,700 g/t silver over 1 meter at the Wolf Vein; 3.34 g/t gold over 120 meters, including 166 g/t gold over 1.3 meters in a step-out hole at Homestake Silver; 26.74 g/t gold over 14.76 meters, including 122 g/t gold over 2.85 meters at the Homestake Silver Deposit; 14.5 g/t gold over 21.18 meters, including 113 g/t gold and 997 g/t silver over 0.68 meters at the Homestake Silver Deposit.

"These results demonstrate both the grade and continuity of mineralization across the district and reinforce our view that this camp remains significantly underexplored," the letter said.

He called the merger with Contango ORE a "pivotal strategic move" that creates "a new North American high-grade, mid-tier silver and gold producer and developer."

Looking ahead, he said Dolly Varden is well positioned with multiple near-term and long-term catalysts, including assays pending from the 56,131-meter drill program, providing continued news flow; a 2026 exploration plan focused on resource growth and new discoveries; 85,000 hectares of prospective land acquired in 2025, generating new exploration targets for 2026; and ongoing M&A due diligence, with a disciplined focus on accretive, shareholder-aligned opportunities.

He also noted shareholders will vote on the merger plan in February, and "22% already have signed voting support agreement and an additional 13% indicating they will be voting in support of the merger."

"We have built a company with scale, financial strength, and an exceptional asset base at a time when high-grade silver and gold assets in safe jurisdictions are increasingly scarce," Khunkhun closed. "On behalf of the entire Dolly Varden Silver team, thank you for your continued support and confidence. We look forward to building on this momentum and delivering long-term value for our shareholders!"

Analyst: 'Agreement Makes Sense' From Strategic Perspective

The merger with Contango will form a North America-focused gold and silver company with assets ranging from advanced exploration to production, reported by Haywood Securities Analyst Marcus Giannini in a Dec. 8 research note. The transaction is anticipated to close in late February to early March 2026.

"We believe the arrangement makes sense from a strategic perspective, offering non-dilutive capital from cash flow generated from [Contango's] Manh Choh [project] to fund exploration and the eventual development of [Dolly's] Kitsault Valley," Giannini wrote. "Dolly has continued to showcase uncapped growth upside at Kitsault, and we expect further advancement of the asset to remain a key growth driver of the merged company."

Haywood Securities maintained its CA$11.25 per share target price on Dolly Varden Silver, which was trading at about CA$6.51 per share at the time of Giannini's report. From that share price, the return to target is 73%. Dolly remains a Buy. The company has 91.9 million shares outstanding, with a market cap of CA$598 million. Its 52-week range is CA$3.21–7.46 per share.

"We expect the high-grade, North American-focused asset base will appeal to a wider investment audience, offering a rerating opportunity," Giannini wrote.

Following the merger announcement, Research Capital adjusted its rating on Dolly Varden to Tender from Speculative Buy, according to an updated note by Analyst Stuart McDougall on December 9.

"Although the implied value falls short of our previous target price of CA$7.60 per share, we see the longer-term benefits of the combination and think some of the immediate hit is offset by exposure to high-grade production from Contango's 30% interest in the Manh Choh gold mine in Alaska," McDougall wrote.

At the time of his report, the Canadian explorer was trading at about CA$6.14 per share. Dolly has 91.9 million shares outstanding, with a market cap of CA$564 million. Its 52-week range is CA$3.21–7.46 per share.

The combined company would be equally owned by the two shareholder groups, have about 30 million shares outstanding for an implied market capitalization of CA$1.13 billion, and have about US$100 million in net cash, according to McDougall. Additionally, the new entity would own 3,000,000 ounces of gold equivalent to advance towards production decisions before the depletion of attributable reserves. The company would be listed on the New York Stock Exchange American and the Toronto Stock Exchange.

The Catalyst: Silver's Gains Impressive

Similar to gold, silver experienced a significant upswing in 2025, capturing the interest of both seasoned precious metals investors and newcomers seeking alternatives to volatile equity markets, according to a report by Courtney Mikulski for CBS News MoneyWatch on December 24.

Although silver doesn't reach the four-figure price per ounce that gold does, its percentage gains have been impressive. The metal began 2025 at around US$30 per ounce and soared to approximately US$70 per troy ounce by late December, more than doubling in value throughout the year.

This rapid increase reflects more than just investor enthusiasm, she wrote. A mix of inflation pressures, supply constraints, geopolitical uncertainty, and rising industrial demand all contributed to silver's sharp rise. Additionally, the Federal Reserve's rate cuts in late 2025 spurred broader interest in hard assets, providing silver with another boost.

"The price of silver is widely expected to increase in 2026, according to precious metals investing experts," Mikulski noted. "And, as silver continues to sit near or break recent price records, investors may see it as a cheaper alternative to gold, and they may be right. But if you're planning to buy into this precious metal in the new year, make sure you fully understand how this type of investment works best."

"If you're a long-term investor, silver should be viewed more as a portfolio diversifier and not a short-term directional bet," Henry Yoshida, CFP, CEO and cofounder of Rocket Dollar, told the author.

Gold and silver surged to new record highs Tuesday amid rising geopolitical tensions and the likelihood of further US rate cuts, reported Mark Burton, Robin Paxton, and Yvonne Yue Li for Bloomberg on December 23.

Spot silver climbed as much as 3.7% on Tuesday, surpassing US$70 an ounce for the first time. Gold came within 15 cents of reaching $4,500 an ounce, building on Monday's gains.

Traders are speculating that the Federal Reserve will continue its trend of reducing interest rates, following three consecutive cuts, by lowering borrowing costs again next year, which would provide a boost for non-yielding precious metals, the report said.

Ownership and Share Structure¹

Institutional investors own 52% of the company. Along with Hecla Mining Co. (HL:NYSE) with 13%, other strategic investors include Fury Gold Mines Ltd. (FURY-T) with 12% and Eric Sprott with 9%. The rest is in retail.

Dolly Varden has 90.88 million outstanding shares and 90.5 million fully diluted shares. Its market cap is CA$614.33 million. Its 52-week range is CA$3.21–CA$7.46 per share.