Max Power Mining raises $20.5M via Hampton Securities for Lawson hydrogen project, Saskatchewan
Max Power Mining Corp. [CSE: MAXX; OTC: MAXXF; FRA: 89N] reported that Hampton Securities Ltd. has successfully closed a best-efforts private placement of 15,805,624 units at a price of $1.30 per unit of Max Power Mining for aggregate gross proceeds of $20,547,311, including partial exercise of the overallotment option, with Eric Sprott as the lead order.
Ran Narayanasamy, Max Power CEO, commented: “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-km-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.”
Under terms of the offering, each unit consists of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder to purchase one common share at an exercise price of $1.80 per share at any time up to 24 months from the closing of the offering.
The net proceeds of the offering will be used for a continuing program of analytical testing, resource modelling and resource estimation of the Lawson natural hydrogen discovery on the Genesis trend near Central Butte, Saskatchewan, followed by a confirmatory well to validate potential commerciality; further acquisition of 2-D and 3-D seismic data covering various targets throughout Max Power’s Saskatchewan land package; drilling of additional wells; and general corporate purposes including administrative and marketing.
In connection with the offering, the company paid a cash commission equal to 6% of the gross proceeds of the offering to Hampton and selling group members and issued 948,337 non-transferable broker warrants, each broker warrant is exercisable to acquire one common share at the issue price until March 20, 2028.
Mr. Sprott through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 3,538,461 units for total consideration of $4,599,999.30.
Certain officers, directors and insiders of the company have acquired an aggregate of 3,620,010 units in connection with the offering.
Hampton Securities is a full-service investment dealer based in Toronto. Hampton Securities is actively engaged in family office, wealth management, institutional services and capital markets activities where it provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad. Hampton Securities is a wholly owned subsidiary of Hampton Financial Corp. [TSXV: HFC].