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 involves the issuance of 4 million units at a price of $2.50 per unit, 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 (CSE).
MAX Power intends to use the net proceeds to further advance its ongoing commercial validation drill program at the Lawson Complex and for general corporate purposes. The Lawson Complex, located near Central Butte, Saskatchewan, represents Canada’s first-ever subsurface Natural Hydrogen system confirmed through deep drilling, with data validated by three independent labs. This investment from Sprott underscores the potential significance of MAX Power’s exploration efforts in the emerging Natural Hydrogen sector, which is seen as a promising clean energy source.
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. However, 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 special meeting on Aug. 20 and all required CSE and regulatory approvals are obtained. This condition provides a safeguard for existing shareholders and ensures that any change in control is subject to shareholder consent.
MAX Power is an innovative mineral and energy exploration company focused on the shift to decarbonization. The company 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. This vast land position positions MAX Power as a key player in the race to develop Natural Hydrogen resources, which could play a crucial role in the global energy transition.
In addition to its Natural Hydrogen projects, MAX Power holds a portfolio of properties in the United States and Canada focused on critical minerals. These properties are 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. Lithium is a critical component in batteries for electric vehicles and energy storage, making this project strategically important as demand for lithium continues to surge.
The investment by Eric Sprott, a well-known and influential figure in the mining and resource sector, provides a strong vote of confidence in MAX Power’s projects and management. His backing could also attract additional institutional interest and enhance the company’s visibility in the investment community. The proceeds from the placement will enable MAX Power to accelerate its drilling programs and advance its projects toward commercial viability, potentially creating significant value for shareholders and contributing to the development of sustainable energy solutions.
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.
