MAX Power Mining Corp. has announced the successful completion of a significant private placement, raising approximately $20.5 million in gross proceeds. The offering, which closed on March 20, 2026, was led by prominent investor Eric Sprott, marking a major milestone for the company.
Details of the Offering
The private placement involved the sale of 15,805,624 units at a price of C$1.30 per unit, resulting in total gross proceeds of $20,547,311.20. Each unit consists of one common share of the company and one-half of one common share purchase warrant. The warrants allow holders to purchase additional common shares at C$1.80 per share within 24 months from the closing date.
Eric Sprott's Significant Investment
Eric Sprott, through his corporation 2176423 Ontario Ltd., acquired 3,538,461 units for a total consideration of $4,599,999.30. This substantial investment underscores his continued support for MAX Power's natural hydrogen exploration projects in Saskatchewan.
CEO Comments on the Funding Achievement
MAX Power CEO Ran Narayanasamy expressed enthusiasm about the funding round, stating, "This is the largest raise in MAX Power history, occurring in the immediate aftermath of the Lawson Discovery as Canada's first confirmed Natural Hydrogen subsurface system on the 475-km-long Genesis Trend in Saskatchewan." He emphasized the project's potential for nation-building through repeatability and scalability across Canada's largest permitted land package for natural hydrogen exploration.
Use of Proceeds
The net proceeds from the offering will be allocated to several key initiatives:
- Analytical testing, resource modeling, and resource estimation of the Lawson Natural Hydrogen Discovery near Central Butte, Saskatchewan, followed by a confirmatory well to validate commercial potential.
- Acquisition of additional 2D and 3D seismic data covering various targets throughout MAX Power's Saskatchewan land package.
- Drilling of additional exploration wells.
- General corporate purposes, including administrative and marketing expenses.
Broker Involvement and Commission
Hampton Securities Limited served as the lead agent and sole bookrunner for the offering. In connection with the transaction, the company paid a cash commission equal to 6% of the gross proceeds to the agent and selling group members. Additionally, 948,337 non-transferable broker warrants were issued, each exercisable to acquire one common share at the issue price until March 20, 2028.
Related-Party Transactions
Certain officers, directors, and insiders of MAX Power acquired an aggregate of 3,620,010 units in connection with the offering. This participation constitutes a related-party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements, as insider participation did not exceed 25% of the company's market capitalization. A material change report was not filed more than 21 days before closing due to the expedited nature of the offering and business considerations.
The successful closing of this $20.5 million offering positions MAX Power to advance its natural hydrogen exploration efforts in Saskatchewan, leveraging the strategic support of Eric Sprott and other investors to potentially unlock significant energy resources in the region.
