Max Power Mining (MAXX.CN), up 5.6% on last look, has arranged a $25 million private placement of units with mining magnate Eric Sprott, the company said Thursday.
The company will issue 12.5 million units at $2.00 apiece. Each unit will consist of one share and a two-year share purchase warrant to buy a share at $2.75. Sprott already holds more than 10% of Max Power's shares, a statement said.
Chief executive Ran Narayanasamy said the $25 million investment accelerates and further de-risks its plan to become the first company in the world to make a large-scale commercial discovery of natural hydrogen, an emerging new primary energy source.
The private placement is expected to close on May 28.
Max Power shares were last seen up $0.12, to $2.22, on the Canadian Securities Exchange.
Price: $2.23, Change: $+0.11, Percent Change: +5.19%