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TICKERS: FNR, OMM; OMMSF

An Arbitrage Trade Between Omineca and 49North
Contributed Opinion

Source:

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

Wingdam

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
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321gold

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com 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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Disclosure:
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.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Omineca Mining and Metals. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Omineca Mining and Metals. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Omineca Mining, a company mentioned in this article.




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