MAX Power Mining Corp. (CSE: MAXX; OTC: MAXXF; FRANKFURT: 89N) has announced a strategic non-brokered private placement with renowned investor Eric Sprott, securing gross proceeds of $10 million. The financing, which is expected to close on or about Aug. 17, 2026, will see 2176423 Ontario Ltd., a corporation beneficially owned by Sprott, subscribe for 4 million units at a price of $2.50 each. Each unit consists of one common share and one warrant exercisable at $3.25 for a period of 24 months.
The investment is a significant endorsement of MAX Power's exploration efforts, particularly its work at the Lawson Complex in Saskatchewan, where the company has confirmed Canada's first-ever subsurface Natural Hydrogen system through deep drilling. The data from this discovery has been validated by three independent labs, positioning MAX Power as a pioneer in the emerging Natural Hydrogen sector. Following the financing, Sprott is expected to beneficially own or control approximately 19.5% of MAX Power's outstanding common shares on a non-diluted basis, and approximately 30.5% on a partially diluted basis, assuming exercise of all warrants. However, Sprott has agreed not to exercise warrants that would push his holdings above 19.9% unless shareholders approve his creation as a control person at the company's Aug. 20 special meeting, and all required CSE and regulatory approvals are obtained.
MAX Power intends to use the net proceeds from the placement to further advance its ongoing commercial validation drill program at the Lawson Complex and for general corporate purposes. This funding comes at a critical time as the company seeks to prove the commercial viability of its Natural Hydrogen discovery, which could have significant implications for the clean energy transition. Natural hydrogen, also known as white hydrogen, is a potentially abundant and low-carbon energy source that could play a major role in decarbonization efforts. By securing this investment, MAX Power is well-positioned to accelerate its exploration and development activities, potentially unlocking a new frontier in sustainable energy.
The company has built a dominant district-scale land position across Saskatchewan, with approximately 1.3 million acres (521,000 hectares) of permits covering prime exploration ground prospective for large-volume accumulations of Natural Hydrogen. In addition to its Natural Hydrogen assets, MAX Power holds a portfolio of properties in the United States and Canada focused on critical minerals, highlighted by a 2024 diamond drilling discovery at the Willcox Playa Lithium Project in southeast Arizona, which is 100%-owned by MAX Power's U.S. subsidiary.
Eric Sprott's investment is a strong signal to the market, given his reputation as a savvy investor in the resource sector. His participation not only provides capital but also adds credibility to MAX Power's projects. The funds will enable the company to continue its drilling program, which is essential for establishing the resource potential of the Lawson Complex. With this financial backing, MAX Power is poised to make significant strides in the development of Natural Hydrogen, a resource that could reshape the energy landscape. The strategic placement also comes as the broader market increasingly focuses on clean energy solutions, making MAX Power's progress particularly timely.
