Sprott invests $7M in MAX Power Mining

Canadian billionaire Eric Sprott has injected a total of C$10 million into MAX Power Mining (MAXX), a company based in Ontario. This investment is in the form of a private placement, with Sprott increasing his stake from 17.6% to 19.5% of the company's issued and outstanding shares. The deal involves the issuance of 4 million units, each comprising one common share and a share purchase warrant, to 2176423 Ontario Ltd., a corporation owned by Sprott. The units are set to be sold at C$2.50 each.

The warrants will become exercisable at C$3.25 per unit for a period of 24 months following the completion of the financing, expected to occur on or around August 17, 2026. This investment comes in the wake of MAX Power Mining's recent acquisition of permits that will enable the expansion of its Lawson natural hydrogen project located in south-central Saskatchewan.

Sprott's earlier involvement in the project amounted to C$25 million, which was made in May. The company plans to utilize the additional funds for the advancement of its ongoing commercial validation drill program at the Lawson site, as well as for general corporate purposes, including administration costs and marketing expenses. The Lawson project aims to discover the "world's first large-scale commercial discovery of natural hydrogen" and is situated approximately 80 kilometers north of Moose Jaw.

Upon completion of the private placement, Sprott will be obligated to file an early warning report adhering to National Instrument 62-103. This system is in place to handle takeover bid and insider reporting issues. A shareholders meeting is scheduled for August 20, 2026, where investors will vote to make Sprott a control person of the company. If the resolution passes, Sprott will assume this role following a four-month and one-day hold period, in accordance with security legislation.