Max Power Mining (MAXX.CN) closed its strategic non-brokered private placement with Eric Sprott for proceeds of $25 million, it said on Friday.
The private placement consisted of 12.5-million units at $2.00 apiece through 2176423 Ontario Ltd., a corporation beneficially owned by Sprott.
"With over $40 million in the treasury, we're ready to execute an aggressive, disciplined approach at the Lawson Complex and elsewhere across our Saskatchewan holdings to maximize upside potential for shareholders in this unique situation," said MAX Power Chief Executive Ran Narayanasamy.
Proceeds will be used for the follow-up drilling at the Lawson Complex, modelling and estimation of the resource potential and near-term commercial development prospects at Lawson, further acquisition of 2D and 3D seismic data over prospective areas across MAX Power's Saskatchewan land package and drilling of additional targets in Saskatchewan, including near-term well completion at Bracken. The company also plans to use proceeds for the acquisition of additional permitted ground, continued development of its proprietary AI-empowered Large Earth Model Integration (MAXX LEMI) Platform with potential global application for efficient targeting of Natural Hydrogen deposits and general corporate needs, including administrative and marketing expenses.
Following the completion of the private placement, Sprott indirectly owns and exercises control over 30.98-million common shares and 24.6-million warrants, about 19.0% of the issued and outstanding common shares (on a non-diluted basis) or 29.6% of the issued and outstanding common shares (on a partially diluted basis, assuming exercise of the Warrants). Pursuant to terms, Sprott has agreed to refrain from exercising warrants that would result in his shareholdings exceeding 19.9% of the issued and outstanding common shares unless requisite shareholder, stock exchange and regulatory approvals have been obtained, it said.
Shares of the company were last seen up 7% at $2.44 on the Canadian Securities Exchange.
Price: $2.44, Change: $+0.16, Percent Change: +7.02%