MAX Power Mining raises $10M from Eric Sprott in private placement

MAX Power Mining Corp. (CSE: MAXX, OTC: MAXXF, FSE: 89N) has entered into a non-brokered private placement with Eric Sprott for gross proceeds of $10 million, according to a press release from the company.

The placement consists of 4,000,000 units priced at $2.50 each, to be subscribed by 2176423 Ontario Ltd., a corporation beneficially owned by Sprott. Each unit includes one common share and one warrant exercisable at $3.25 per share for 24 months from closing. Closing is anticipated on or about Aug. 17, 2026, subject to approval from the Canadian Securities Exchange.

The company says it intends to use the net proceeds to advance its commercial validation drill program at the Lawson Complex and for general corporate purposes.

Sprott is classified as a related party under Multilateral Instrument 61-101, as he already beneficially owns more than 10% of the company's outstanding common shares. Prior to the placement, Sprott held 30,984,979 common shares and 24,638,548 warrants, representing approximately 17.6% of issued shares on a non-diluted basis. Following completion, his holdings will rise to 34,984,979 common shares and 28,638,548 warrants, representing approximately 19.5% on a non-diluted basis and 30.5% on a partially diluted basis.

Sprott has agreed not to exercise warrants if doing so would push his ownership above 19.9% of outstanding shares unless shareholder and CSE approvals are obtained. A special shareholder meeting is scheduled for Aug. 20, 2026, at which disinterested shareholders will vote on a resolution to approve Sprott as a control person of the company.

All securities issued are subject to a statutory hold period of four months plus one day from the date of issuance under applicable Canadian securities legislation.

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