Canadian billionaire Eric Sprott has invested C$10 million in MAX Power Mining (CSE: MAXX; OTC: MAXXF) through a private placement, increasing his ownership from 17.6% to 19.5% of issued and outstanding shares on a non-diluted basis.
MAX will issue 4 million units valued at C$2.50 a piece to 2176423 Ontario Ltd., a corporation owned by Sprott. The deal is expected to close on or around Aug. 17, 2026. Each unit consists of a common share and a share purchase warrant. Those warrants are enactable at C$3.25 for 24 months following the financing’s closing date.
The news follows the company’s recent acquisition of permits allowing for the expansion of its Lawson natural hydrogen project in south-central Saskatchewan. Sprott previously invested C$25 million into the project in May.
MAX says it intends to use the additional money to advance its ongoing commercial validation drill program at Lawson and for “general corporate purposes,” including administration costs and marketing expenses.
Located about 80 kilometres north of Moose Jaw, Sask., Lawson is a multi-well commercial validation drill program in search of the “world’s first large-scale commercial discovery of natural hydrogen,” according to the company.
Investment finalizing
Once the private placement is completed, Sprott will be required to file an early warning report in connection with the acquisition. The report is pursuant to National Instrument 62-103: the early warning system and related take-over bid and insider reporting issues.
A shareholders meeting is scheduled for Aug. 20, 2026, where investors will vote to make Sprott a control person of the company. If the resolution passes, Sprott will assume the role after a hold period of four months and one day in accordance with security legislation.
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