Silver Explorer's Shareholders Overwhelmingly Advance Contango ORE Merger

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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.

Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) announced that its shareholders have overwhelmingly approved its proposed merger with Contango ORE Inc (CTGO:NYSEA), according to a March 17 release.

The approval came during a special meeting of shareholders held on Tuesday. The shareholders voted in favor of acquiring all issued and outstanding common shares of Dolly Varden by 1566004 B.C. Ltd, a wholly owned subsidiary of Contango, as part of a court-approved plan of arrangement first announced on December 8, 2025.

"The special resolution approving the arrangement was approved by 98.78% of the votes cast by Dolly Varden shareholders present in person or represented by proxy at the meeting," the company said in the release.

For more detailed information about the arrangement, stakeholders are encouraged to review the company's management information circular and the arrangement agreement, both of which are available on SEDAR+. The completion of the arrangement is still subject to the approval of the British Columbia Supreme Court and other customary conditions. A court hearing for the final order to approve the Arrangement is scheduled for March 23, with the closure of the arrangement anticipated shortly thereafter, Dolly Varden said.

Post-arrangement, Dolly Varden Shares are expected to be delisted from the TSX-V and the NYSE American, the company said. Additionally, an application will likely be made for the company to cease being a reporting issuer in Canada following the closure of the arrangement.

In a parallel development, Contango's stockholders also approved the arrangement and related matters at their own special meeting on the same day.

For Dolly Varden shareholders who are eligible and wish to receive exchangeable shares instead of Contango shares, they must complete and submit the Letter of Transmittal and Election Form, which was included in the meeting materials, by March 24. Failure to submit a properly completed form by this deadline will result in shareholders receiving Contango shares as consideration for their Dolly Varden Shares. Copies of the Letter of Transmittal and Election Form are also available on SEDAR+.

Expert: 'No Drama Here'

The Gold Advisor Senior Analyst Jeff Valks commented on the votes on March 18, saying, "No drama here. Dolly Varden Silver’s shareholders just voted — 98.78% in favor of merging with Contango ORE. That’s not a close call. That’s everyone nodding at the same time. Contango shareholders also approved it. Two sides, same answer."

According to Valks, each Dolly Varden share will be converted into 0.1652 of a Contango share. To put it simply, owning 100 Dolly shares will equate to receiving 16.52 Contango shares, and 1,000 Dolly shares will convert to 165.2 Contango shares. The process is streamlined with no required action from most shareholders; the conversion will be handled automatically by brokers, and the new Contango shares will appear in shareholders' accounts.

The key date to remember is March 24, which is the deadline for those opting for exchangeable shares instead of standard Contango stock. Missing this deadline simply results in receiving Contango shares, Valks said.

Post-approval, Valks said the deal is expected to close shortly thereafter, leading to the delisting of Dolly shares from the TSX-V and NYSE American and likely ending the company’s reporting obligations in Canada. This marks the transition of Dolly Varden from a standalone entity to a part of a larger conglomerate.

This merger isn’t just about shareholder votes, which were anticipated to favor the merger, but about strategically combining assets, streamlining structures, and moving forward as a single entity under the banner of Contango, aptly described as a "merger of equals."

Valks noted that it’s important to remember the significant achievements of Dolly Varden before the merger, such as impressive drill results including 4.66 grams per tonne (g/t) gold over 48.49 meters and 467 g/t silver over 15.32 meters. These standout figures don't vanish but will now be part of Contango's portfolio.

"Contango itself sits in an interesting lane — part explorer, part developer, part producer," he wrote. "They’ve recently inched into the GDXJ ETF. The stock has been on a big run in that time, jumping from US$9/share to a high of US$32.38. You’ll see below that shares are trading at a very crucial support line — US$20.50. Since you’re getting shares through the deal anyway, don’t rush here, see how it behaves before adding more."

Valks said both he and Gold Advisor founder Jeff Clark maintain full weighting on the stock.

Haywood Capital Markets recently updated its financial outlook for precious metals stocks on January 27, adjusting several key projections. The firm raised its gold price forecasts for both the short and long term, modified its foreign exchange rate assumptions, and reduced its Net Asset Value (NAV) multiple from 0.75x to 0.70x. As a result of these changes, Haywood increased its target price for Dolly Varden's shares from CA$11.25 to CA$14.00, while continuing to recommend a Buy rating for the stock.

Additionally, on February 25, Peter Krauth of The Silver Advisor highlighted Dolly Varden as one of the companies currently offering the "best relative value." Krauth encouraged further investigation and consideration of the company, stating, "In my view, they are worthy of research and consideration."

The Catalyst: War, Inflation Cause Sell-Off

On Thursday, gold and silver prices plummeted alongside a broader market sell-off, driven by escalating concerns over the Iran war and rising inflation, according to a report by Chloe Taylor for CNBC on March 19.

Spot gold fell nearly 5% to dip below US$4,600 an ounce, while front-month gold futures also saw a decline of almost 6% to around the same level. Silver experienced even steeper losses, with the ProShares Ultra Silver ETF dropping 20% before the market opened, and the iShares Silver Trust ETF, previously buoyed by a meme-driven trading frenzy earlier in the year, fell almost 10%.

The downturn wasn't confined to precious metals alone; mining stocks and related exchange-traded funds also faced significant selling pressure. This trend extended into European markets, where the Stoxx Europe Basic Resources index traded 6% lower, with shares of Fresnillo, a leading silver and major gold producer, down 9.3%, Taylor wrote.

The sell-off reflects a broader risk-off sentiment that has impacted global equities and government bonds alike. European stocks moved sharply lower in early trading, and U.S. equity futures also indicated a likely decline at the market opening. The ongoing U.S.-Iran conflict, now entering its third week, has heightened fears of an energy crisis that could exacerbate global inflation, following strikes on energy facilities in Iran and Qatar that caused oil and gas prices to spike.

Central banks are closely monitoring the situation, with the U.S. Federal Reserve maintaining steady rates on Wednesday, albeit acknowledging the uncertain impacts of the Middle East conflict.

After record rallies in 2025, where gold and silver surged 66% and 135% respectively, both metals have encountered much more volatile trading in 2026. Notably, silver futures experienced their most significant single-day drop since the 1980s at the end of January, underscoring the heightened market sensitivity to geopolitical and economic developments.

According to a March 17 opinion piece for Kitco News, Jeffrey Christian from CPM Group delved into the dynamics of the gold, silver, platinum, and palladium markets, highlighting some intriguing trends and relationships in a recent presentation. Gold prices, after hitting record highs earlier in the year, have been consolidating around the US$5,000 mark. Despite escalating tensions in the Middle East and rising oil prices, gold prices haven't surged as some might expect.

Christian explained that gold's price movements are not directly correlated with oil prices, even in times of Middle Eastern conflicts, contrary to what many investors might believe. The connection between these two markets is historically much weaker than commonly perceived.

Despite the possibility of short-term price volatility and potential pullbacks, CPM Group remains optimistic about the future of precious metals, the piece said. They believe that the prevailing economic and political conditions will continue to foster an environment conducive to higher prices for gold and other precious metals over the long term.

Ownership and Share Structure¹

Institutional investors own 52% of the company. Among them, Hecla Mining Co. (HL:NYSE) holds 13%, Fury Gold Mines Ltd. (FURY-T) owns 12%, and Eric Sprott holds 9%, as of the company's October 2025 investor presentation. The remainder is held by retail investors.

Dolly Varden has 91.91 million outstanding shares and its market cap is CA$408.39 million. Its 52-week range is CA$3.21–CA$8.09 per share.