MAX Power Mining Corp. (CSE: MAXX; OTC: MAXXF; FRANKFURT: 89N) has closed a $25 million strategic non-brokered private placement with renowned resource investor Eric Sprott, the company announced today. The financing positions the company to accelerate its exploration and development activities focused on natural hydrogen opportunities across Saskatchewan, including follow-up drilling and resource evaluation at the Lawson Complex.
The financing consisted of 12.5 million units priced at $2.00 per unit, with each unit comprising one common share and one warrant exercisable at $2.75 for a period of 24 months. The company said the financing increases its treasury to more than $40 million. Proceeds will support drilling, seismic data acquisition, additional land acquisitions and continued development of its proprietary AI-powered Large Earth Model Integration (MAXX LEMI) platform for natural hydrogen targeting.
Following the transaction, Mr. Sprott beneficially owns approximately 19.0% of the company’s outstanding common shares on a non-diluted basis and 29.6% on a partially diluted basis, assuming exercise of all warrants, subject to an agreement limiting ownership to 19.9% absent required approvals. The investment underscores growing interest in natural hydrogen as a potential clean energy source and validates MAX Power's exploration approach.
MAX Power is an innovative mineral and energy exploration company focused on the shift to decarbonization. The company's Lawson Discovery near Central Butte, Saskatchewan, represents Canada's first-ever subsurface natural hydrogen system confirmed through deep drilling with data validated by three independent labs. MAX Power has built 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 company also 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, 100%-owned by MAX Power's U.S. subsidiary.
The strategic investment from Eric Sprott, a well-known figure in the resource sector, signals confidence in MAX Power's potential to pioneer natural hydrogen exploration in North America. Natural hydrogen, also known as white or gold hydrogen, is generated through natural geological processes and offers a potentially low-carbon alternative to conventional hydrogen production. With over $40 million in treasury and Sprott's backing, MAX Power is well-positioned to advance its exploration programs and further develop its AI-driven targeting technology. The company remains committed to responsible exploration and development practices that prioritize environmental stewardship, meaningful community engagement, and strong corporate governance.
