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, marking the largest raise in the company's history.
• The financing was led by Eric Sprott, who acquired over 3.5 million units, and includes participation from company insiders.
• Proceeds will fund analytical testing, resource modeling, and drilling for the Lawson natural hydrogen discovery on the Genesis trend, alongside seismic data acquisition and general corporate purposes.

Key Details

• Transaction Structure: Best efforts private placement of 15,805,624 units.
• Price: $1.30 per unit.
• Gross Proceeds: $20,547,311 (including partial exercise of overallotment option).
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of $1.80 per share, exercisable for 24 months from closing.
• 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, constituting a related-party transaction under MI 61-101.
• Broker Compensation:
  • Cash commission of 6% of gross proceeds paid to Hampton Securities and selling group members.
  • Issuance of 948,337 non-transferable broker warrants, exercisable at the issue price until March 20, 2028.
• Use of Proceeds:
  1. Analytical testing, resource modeling, and estimation of the Lawson natural hydrogen discovery; 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 (administrative and marketing).
• Regulatory Exemption: Offered under the listed issuer financing exemption (NI 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