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. The financing, consisting of 12.5 million units priced at $2.00 per unit, significantly strengthens MAX Power's financial position as it pursues exploration and development of natural hydrogen opportunities across Saskatchewan.
Each unit in the private placement comprises one common share and one warrant exercisable at $2.75 for a period of 24 months. Following the transaction, 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 financing increases MAX Power's treasury to more than $40 million, providing substantial working capital for the company's exploration activities. MAX Power said 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. The company holds approximately 1.3 million acres (521,000 hectares) of permits across Saskatchewan, covering prime exploration ground prospective for large-volume accumulations of natural hydrogen.
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 plans follow-up drilling and resource evaluation at the Lawson Complex, which is central to the company's hydrogen strategy.
In addition to its hydrogen portfolio, MAX Power holds properties in the United States and Canada focused on critical minerals, including 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.
The investment from Eric Sprott, a prominent figure in the resource sector known for backing early-stage mining and exploration companies, signals strong confidence in MAX Power's natural hydrogen thesis. The financing positions MAX Power to accelerate its exploration programs and further develop its AI-driven targeting technology, which could play a crucial role in identifying and developing natural hydrogen resources as the world seeks decarbonization solutions.
For the full press release, visit https://ibn.fm/hW8Y1. More news and updates relating to MAXXF are available in the company's newsroom at https://ibn.fm/MAXXF.
