MAX Power Mining closes $10M private placement with Eric Sprott

MAX Power Mining Corp. (CSE: MAXX; OTC: MAXXF; FSE: 89N) has closed a non-brokered private placement with investor Eric Sprott, raising $10 million to fund drilling activities at its Lawson Complex in Saskatchewan, according to a company statement.

The placement consisted of 4,000,000 units priced at $2.50 each, issued through 2176423 Ontario Ltd., a corporation beneficially owned by Sprott. Each unit comprised one common share and one warrant, with each warrant exercisable at $3.25 per share for 24 months from the closing date. All securities are subject to a statutory hold period of four months plus one day from issuance. The placement remains subject to final approval from the Canadian Securities Exchange.

The company said it intends to use the net proceeds to advance its commercial validation drill program at the Lawson Complex and for general corporate purposes, including administrative and marketing expenses.

Sprott, who held more than 10% of the company's common shares prior to the transaction, now indirectly owns and controls 34,984,979 common shares and 28,638,548 warrants, representing approximately 19.5% of issued and outstanding common shares on a non-diluted basis, or 30.5% on a partially diluted basis assuming full warrant exercise.

Because Sprott held more than 10% of outstanding shares, the transaction was classified as a related-party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of the units did not exceed 25% of the company's market capitalization.

A shareholder meeting is scheduled for Aug. 20, 2026, at which disinterested shareholders will be asked to approve a resolution recognizing Sprott as a control person of the company. Under a supplementary agreement, Sprott agreed not to exercise warrants that would push his holdings above 19.9% of outstanding shares without the required approvals.

CEO Ran Narayanasamy said the investment would allow the company to "accelerate our validation drilling at the Lawson Complex."

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