Dolly Varden Silver stock crashes 9.5% as merger with Contango ORE nears finalization
Dolly Varden Silver Corporation's stock plunged to a 52-week low of €2.81 on Wednesday, marking a near 9.5% drop in a single day. The decline comes as the company nears the final stages of its merger with Contango ORE, a deal overwhelmingly backed by shareholders.
The merger, approved by nearly 99% of Dolly Varden's shareholders, will see the company absorbed into Contango ORE. Once legally finalised, Dolly Varden will no longer exist as a standalone entity. Its shares will be delisted from the TSX Venture Exchange and NYSE American, ending its independent trading.
A key court hearing on March 23, 2026, before the British Columbia Supreme Court will determine final approval. Shareholders have until March 24, 2026, to decide their compensation, with the exchange ratio fixed at 0.1652 Contango shares per Dolly Varden share. Those who fail to respond by the deadline will automatically receive Contango ORE common shares. The merger combines Dolly Varden's silver-focused projects—including the Kitsault Valley Project in British Columbia's Golden Triangle—with Contango ORE's gold and exploration assets. The goal is to create a more diversified and operationally efficient mining company. Before the deal, Dolly Varden operated as a mineral exploration firm with no listed employees, focusing on a 163-square-kilometre site near tidewater. Technical indicators reflect the stock's recent struggles. The Relative Strength Index (RSI) sits at 26.7, placing it firmly in oversold territory.
The merger's completion will mark the end of Dolly Varden's independent operations. Shareholders now await the court's final decision before the March 24 deadline. If approved, the combined entity will move forward with a broader portfolio of precious metals projects.
