An Arbitrage Trade Between Omineca and 49North

Source: Bob Moriarty for Streetwise Reports   07/03/2020

Bob Moriarty of 321gold does the math on the two companies.

Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) will be in production shortly at the Wingdam project on Lighting Creek in BC. They are being very quiet about it but it’s happening. That’s a big deal and why the shares have shot from $0.15 in the middle of May to a high of $0.70 on July 2, 2020. Tom MacNeill as President and CEO heads Omineca.

The MacNeill family also runs a company named 49North Resources Inc. (FNR:TSX.V) that is pretty much a fund holding positions in about 60 different juniors in both energy and minerals. FNR owns 45 million shares of OMM. With OMM at $0.68 that makes the portion owned by FNR worth about $30 million.

With FNR shares selling for $0.14, that makes FNR’s market cap about $11.6 million. FNR does have debt in the form of a convertible debenture but they also have pieces of about 59 other companies than Omineca.

So if you buy 49North shares today you are basically buying Omineca shares at half price.

Omineca Mining is not an advertiser and I have no financial relationship other than having participated in the last PP at $0.12 with a full $0.20 warrant. The four-month hold doesn’t expire until August 28th so there is literally no overhead.

49North Resources is also not an advertiser but I can both add and subtract so I have picked up shares in the open market.

To the extent that everyone that owns shares is somewhat biased, I am biased so you should do your own due diligence.

Omineca Mining
OMM-V $0.68 (Jul 02, 2020)
OMMSF OTCBB 98.4 million shares
Omineca Mining website.

49North Resources
FNR-V $0.14 (Jul 02, 2020)
FNNINF OTCBB 83 million shares
49North Resources website.

Bob Moriarty
President: 321gold

Bob Moriarty founded, with his late wife, Barbara Moriarty, more than 16 years ago. They later added to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Omineca Mining and 49North. Neither company is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: FNR:TSX.V,