Canadian billionaire Eric Sprott exercised more than 12 million warrants Tuesday to increase his stake in Max Power Mining (CSE: MAXX; OTC: MAXXF) and advance its Lawson natural hydrogen project in Saskatchewan.
Max Power says it has received more than $6 million (US$4.32 million) from the transaction which increases Sprott’s ownership to 24.35% from 19.5%. The news follows investments in May and August worth $25 million and $10 million respectively.
“The early warrant exercise further accelerates our commercial validation drill program, with fresh updates from the field expected shortly,” said Ran Narayanasamy, Max Power’s CEO.
Natural hydrogen drill program
Located about 80 km north of Moose Jaw, Lawson has a multi-well drill program in search of the “world’s first large-scale commercial discovery of natural hydrogen,” according to the company.
“We are ahead of schedule, under budget, and delineating a very large Natural Hydrogen system as we triangulate the first deposit at the Lawson complex,” added Narayanasamy.
Investor conference
Sprott’s involvement is unusual, following decades of investment primarily in precious metal explorers. But because natural hydrogen has the potential to be produced without large amounts of electricity or related emissions, it has garnered the interest of many new investors in the energy sector.
The industry is still highly speculative, however, with many voicing concerns regarding sufficient concentrations and whether natural hydrogen can be produced in an economically viable way.
Chad Levesque, Max Power’s president and director, will present at the Clean Energy and Metals Virtual Investor Conference Thursday to discuss the company’s role in this market.
“The Lawson discovery is getting bigger by the day and I encourage investors to pre-register and mark this event on their calendar,” he said.
Levesque will be live from 1:30 p.m. ET on Aug. 27.
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