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 will be conducted through the issuance of 4 million units at a price of $2.50 each, to be subscribed for by 2176423 Ontario Ltd., a corporation beneficially owned by Sprott. Each unit consists of one common share and one warrant, exercisable at $3.25 for a period of 24 months. The closing is anticipated on or about Aug. 17, 2026, subject to customary conditions, including approval from the Canadian Securities Exchange.
This investment marks a significant vote of confidence in MAX Power's pioneering work in the Natural Hydrogen sector. The company has made headlines with its Lawson Discovery near Central Butte, Saskatchewan, which represents Canada's first-ever subsurface Natural Hydrogen system confirmed through deep drilling, with data validated by three independent labs. MAX Power has secured dominant district-scale land positions 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.
The net proceeds from the placement will be used to further advance the ongoing commercial validation drill program at the Lawson Complex and for general corporate purposes. 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 he beneficially owns or controls. Sprott has agreed not to exercise warrants that would increase 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.
This strategic investment from one of the most prominent figures in the mining and resource sector underscores the potential of MAX Power's Natural Hydrogen assets. Natural hydrogen, also known as white hydrogen, is a clean energy source that could play a crucial role in the global transition to decarbonization. MAX Power is an innovative mineral and energy exploration company focused on this shift, and its portfolio also includes a 2024 diamond drilling discovery at the Willcox Playa Lithium Project in southeast Arizona, 100%-owned by MAX Power's U.S. subsidiary.
The company is committed to responsible exploration and development practices that prioritize environmental stewardship, meaningful community engagement, and strong corporate governance. This investment will enable MAX Power to accelerate its exploration and development efforts, potentially positioning it as a key player in the emerging Natural Hydrogen industry.
For more information on MAX Power and its projects, visit the company's newsroom at https://ibn.fm/MAXXF. The full press release is available at https://ibn.fm/uMdho.
