Max Power closes $5-million private placement

Executive Summary

• Max Power Mining Corp. has closed a non-brokered private placement of units for total gross proceeds of $5 million, marking the first major investment by a Vietnam-based company in Saskatchewan.
• The investment is made by Big Energy, an affiliate of Bitexco, as part of a strategic partnership to accelerate the discovery and commercial development of natural hydrogen across Max Power’s 1.3 million-acre land package.
• The transaction includes the issuance of 16,666,666 units at 30 cents per unit, with proceeds designated for exploration, drilling, and working capital.

Key Details

• Transaction Structure: Non-brokered private placement of units.
• Investor: Big Energy Joint Stock Company (an affiliate of Bitexco), owned and chaired by Mr. Vu Quang Hoi.
• Gross Proceeds: $5,000,000 CAD.
• Price Per Unit: $0.30 CAD.
• Units Issued: 16,666,666 units.
• Warrant Terms: Each unit consists of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant entitles the holder to acquire one share at an exercise price of $0.45 CAD.
• Warrant Expiry: 24 months from issuance, subject to an acceleration provision. If the closing price of common shares is $0.60 or higher for 10 consecutive trading days, the exercise period may be reduced to 60 days at the company's discretion.
• Hold Period: Statutory hold period of four months plus one day for all securities.
• Shareholder Rights: Big Energy has entered into an investor rights and shareholder agreement, granting rights to participate in future financings on a pro rata basis and certain board nomination rights contingent on maintaining specific ownership levels.
• Board Appointment: Dr. Phung Khac Hoan, General Director of Big Energy, will join the Max Power board of directors, subject to exchange approval. He holds a PhD in petroleum geology.
• Use of Proceeds: Exploration and drilling of natural hydrogen properties in Saskatchewan, working capital, and general corporate purposes.
• Strategic Context: This follows an investment by Eric Sprott in the previous summer and positions Max Power to advance its multiwell drilling program for natural hydrogen.

Notable Quotes

• Ran Narayanasamy, CEO: "We are on the cusp of another clean energy breakthrough in Saskatchewan, and this new Vietnamese partnership, on top of the investment by Eric Sprott this past summer, strategically positions Max Power to achieve its short-term and longer-term objectives."
• Jim Nickel, Canada's Ambassador to Vietnam: "Canada is delighted to see this partnership between Max Power and Bitexco as it reflects the strong spirit of increased collaboration between Canada and Vietnam... In addition, this partnership is driving the emergence of an entirely new sector in Saskatchewan -- natural hydrogen -- which is truly exciting and groundbreaking for Canada."