Max Power Mining (CSE:MAXX) has completed a C$10 million ($10.14 million) strategic investment from Eric Sprott.
The non-brokered private placement was executed through 2176423 Ontario, a corporation beneficially owned by Sprott.
The placement consisted of 4 million units priced at C$2.50 each. Each unit includes one common share and one warrant exercisable at C$3.25 for 24 months.
Proceeds will advance the commercial validation drill program at the Lawson Natural Hydrogen Complex in Saskatchewan and support general corporate purposes.
Following the placement, Sprott indirectly owns approximately 35 million common shares and an estimated 28.64 million warrants.
This represents approximately 19.5% of issued shares on a non-diluted basis, or 30.5% on a partially diluted basis. The transaction constituted a related party transaction under Multilateral Instrument 61-101 as Sprott holds more than 10% of outstanding shares.
Max Power relied on exemptions from formal valuation and minority shareholder approval requirements as the fair market value did not exceed 25% of the company’s market capitalisation.
A special shareholder meeting on 20 August 2026 will ask disinterested shareholders to approve creating Sprott as a control person.
Under a supplementary agreement, Sprott has agreed to refrain from exercising warrants that would result in shareholdings exceeding 19.9% until requisite approvals are obtained.
Chief Executive Officer Ran Narayanasamy says the investment helps speed up operational milestones.
“We are grateful for Eric’s continued confidence in Max Power and our mission to unlock the commercial potential of natural hydrogen,” Narayanasamy says.
“This investment enables us to accelerate our validation drilling at the Lawson complex, bringing us closer to demonstrating the viability of this transformative energy source.”
The Lawson discovery near Central Butte represents Canada’s first subsurface natural hydrogen system confirmed through deep drilling, with data validated by three independent laboratories.
Max Power holds around 807,371 hectares of permits across Saskatchewan covering prospective ground. The company has commenced a multiwell follow-up drill program to validate the commerciality of the broader Lawson complex, interpreted to cover a 28km² area along the 475km Genesis trend.
All securities are subject to a four-month-plus-one-day statutory hold period. The placement requires final Canadian Securities Exchange approval.
Max Power Mining is a mineral and energy explorer focused on the shift to decarbonisation, with its Lawson discovery located near Central Butte in Saskatchewan.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
