Hampton closes $20.5M placement for Max Power

Executive Summary

• Max Power Mining Corp. (CSE: MAXX) has closed a $20.5 million best efforts private placement of 15,805,624 units at $1.30 per unit, led by Eric Sprott.
• The offering includes partial exercise of the overallotment option and involves significant insider participation, constituting a related-party transaction.
• Net proceeds will fund analytical testing, resource modeling, and drilling for the Lawson natural hydrogen discovery on the Genesis trend, along with seismic data acquisition and general corporate purposes.

Key Details

• Gross Proceeds: $20,547,311.
• Units Sold: 15,805,624 units at $1.30 per unit.
• Lead Investor: Eric Sprott (via 2176423 Ontario Ltd.) acquired 3,538,461 units for $4,599,999.30.
• Insider Participation: Officers, directors, and insiders acquired an aggregate of 3,620,010 units. This constitutes a related-party transaction under Multilateral Instrument 61-101, relying on exemptions from formal valuation and minority shareholder approval as participation does not exceed 25% of market capitalization.
• Warrant Terms (Investors): Each unit consists of one common share and one-half of one common share purchase warrant. Warrants are exercisable to purchase one common share at $1.80 per share for 24 months from closing.
• Broker Compensation:
  • Cash commission: 6% of gross proceeds paid to Hampton Securities and selling group members.
  • Broker Warrants: 948,337 non-transferable warrants issued, exercisable to acquire one common share at the issue price ($1.30) until March 20, 2028.
• Use of Proceeds:
  1. Analytical testing, resource modeling, and estimation of the Lawson natural hydrogen discovery near Central Butte, Sask., including a confirmatory well to validate commerciality.
  2. Acquisition of 2-D and 3-D seismic data across the Saskatchewan land package.
  3. Drilling of additional wells.
  4. General corporate purposes, including administrative and marketing.
• Regulatory Exemption: Offered under the listed issuer financing exemption under National Instrument 45-106 in all Canadian provinces except Quebec and qualifying US jurisdictions. No statutory hold period applies.

Notable Quotes

• "This is the largest raise in Max Power history, occurring in the immediate aftermath of the Lawson Discovery as Canada's first confirmed natural hydrogen subsurface system on the 475-kilometre-long Genesis trend. We thank Eric Sprott for his continued great support of a project that we believe has nation-building scope through repeatability and scalability across the country's largest permitted land package for natural hydrogen exploration and development." — Ran Narayanasamy, CEO, Max Power Mining Corp.