Max Power Mining (CSE:MAXX) has completed the exercise of 8.33 million share purchase warrants for total proceeds of C$3.75 million ($3.79 million) and called a special shareholder meeting to approve Eric Sprott as a control person.
The warrant exercise by Big Energy increases its total common share position in Max Power to 25 million shares, representing 14.5% of the company’s current issued and outstanding shares.
“We’re delighted with Big Energy’s early exercise of these warrants as it underscores how they are aligned with our vision of immediately building on our exploration success and turning the Lawson complex into the world’s first large-scale commercial discovery of natural hydrogen,” CEO Ran Narayanasamy says.
Through 2176423 Ontario, Eric Sprott indirectly owns 30.98 million common shares representing 17.98% of issued and outstanding shares on a non-diluted basis. REV Exploration (TSX-V:REVX) holds six million shares or 3.5% ownership as the next largest shareholder after Big Energy.
Of the 40.15 million warrants currently outstanding, Sprott indirectly owns or exercises control over 24.64 million warrants, representing 61.37% of the total.
Sprott participated in the company’s most recent C$25 million private placement on 28 May, acquiring 12.5 million units at C$2.00 per share with warrants exercisable at C$2.75 per share until May 2028.
If Sprott exercises all outstanding warrants, he would control 55.62 million shares on a partially diluted basis. Under Canadian Securities Exchange policies, the warrant exercise could materially affect company control, requiring disinterested shareholder approval.
Sprott has undertaken not to exercise warrants that would increase his holdings above 19.9% without first obtaining disinterested shareholder approval.
The board recommends shareholders vote for the control person resolution, believing Sprott’s continued participation serves shareholder interests.
Max Power Mining is preparing a multiwell follow-up drilling program to validate commerciality of the broader Lawson complex covering a 28km² area along the 475km Genesis trend.
Write to JC Villarba at Mining.com.au
Images: Max Power Mining
