MAX Power secures $25 million investment from Eric Sprott

MAX Power Mining Corp. (CSE: MAXX) closed a $25 million private placement with investor Eric Sprott to fund natural hydrogen exploration activities at its Saskatchewan properties, according to a company statement.

The financing consisted of 12.5 million units priced at $2.00 each through 2176423 Ontario Ltd., a corporation controlled by Sprott. Each unit includes one common share and one warrant exercisable at $2.75 per share for 24 months.

The company plans to use proceeds for drilling at the Lawson Complex, resource modeling and estimation work, seismic data acquisition across its Saskatchewan land package, and drilling additional targets including the Bracken location. Funds will also support development of the company's artificial intelligence platform for hydrogen deposit targeting and general corporate purposes.

Following the transaction, Sprott holds approximately 19% of MAX Power's outstanding shares on a non-diluted basis through 30.98 million shares and 24.64 million warrants. Prior to the investment, he controlled about 12.3% of the company. Sprott agreed to limit warrant exercises to prevent his ownership from exceeding 19.9% without required approvals.

"With over $40 million in the treasury, we're ready to execute an aggressive, disciplined approach at the Lawson Complex," said CEO Ran Narayanasamy in the statement.

The transaction qualified as a related party transaction under securities regulations since Sprott already held more than 10% of the company's shares. All securities are subject to a four-month statutory hold period.

MAX Power holds approximately 1.3 million acres of permits in Saskatchewan for natural hydrogen exploration. The company's Lawson Discovery near Central Butte represents what it describes as Canada's first confirmed subsurface natural hydrogen system through deep drilling.

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