An Arbitrage Trade Between Omineca and 49North
Omineca Mining (OMM-V) 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 $.15 in the middle of May to a high of $.70 on July 2, 2020. Tom MacNeill as President and CEO heads Omineca.
The MacNeill family also runs a company named 49North Resources (FNR-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. In addition FNR controls another 12 million shares through a convertible debenture. With OMM at $.68 that makes the portion owned by FNR worth about $39 million.
With FNR shares selling for $.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 a 60% discount.
Omineca Mining is not an advertiser and I have no financial relationship other than having participated in the last PP at $.12 with a full $.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.