Sprott's $25M Bet on Max Power Mining Comes With a 19.9% Ceiling — and a $2.75 Warrant Trigger

Billionaire investor Eric Sprott injects C$25M into Max Power Mining, with warrants capped at 19.9% ownership. Funds target Canada's first deep-drilling-verified natural hydrogen system in Saskatchewan.

Eric Sprott is putting another $25 million into Max Power Mining, but this time the money comes with strings attached. The billionaire resource investor, who already holds more than 10% of the company's outstanding shares, has agreed not to exercise his warrants if doing so would push his stake above 19.9% — unless shareholders, the exchange, and regulators sign off first. It is a control brake built directly into the fundraising, turning what could have been a routine private placement into a carefully structured related-party transaction.

The deal, announced on 21 May 2026, consists of 12.5 million units priced at C$2.00 each, for gross proceeds of C$25 million. The funds are being placed through Sprott's holding company, 2176423 Ontario Ltd., and the entire offering is non-brokered. Each unit includes one common share and one warrant, with the warrant entitling Sprott to buy an additional share at C$2.75 within 24 months of closing. That strike price sits 54% above the roughly C$1.30 per share he paid in his initial investment last March — a clear signal that he sees far more value ahead.

The 19.9% cap applies specifically to warrant exercise. If Sprott's direct or indirect ownership would exceed that threshold, he must forgo the warrants unless an exception is granted. Max Power Mining intends to rely on exemptions from formal valuation and minority shareholder approval under Canadian securities law (MI 61-101), arguing that the value of the units issued to Sprott does not exceed 25% of the company's market capitalisation. The closing is scheduled for 28 May 2026, subject to approval from the Canadian Securities Exchange and other regulatory clearances. No finder's fees or commissions are payable, and all securities issued are subject to a statutory hold period of four months plus one day.

Where is the money going? Directly into Saskatchewan's natural hydrogen play. Max Power Mining holds roughly 1.3 million acres of exploration licences in the province, with another 5.7 million acres under application. Its flagship Lawson discovery near Central Butte has been confirmed by three independent laboratories as Canada's first deep-drilling-verified natural hydrogen system. The net proceeds will fund follow-up drilling at the Lawson Complex, resource modelling, additional 2D and 3D seismic surveys, and a near-term completion at Bracken. A confirmation well at the structural high point of the Lawson feature is expected to test commercial flow rates in the first half of 2026.

The infrastructure backdrop is also evolving. In May, Max Power Mining signed a memorandum of understanding with the city of Moose Jaw to develop a regional hydrogen hub. Separately, Bell Canada is building a C$1.7 billion AI data centre nearby — a potential anchor off-taker for hydrogen once commercial production begins.

On the trading front, the stock continues to reflect both the promise and the uncertainty. At C$1.56 (€1.55 on Friday), the shares were up 3.33% on the day but remain 4.79% lower over the past week. The year-to-date gain stands at roughly 298%, and the 12-month return surpasses 1,015%. Yet the relative strength index of 33 points to oversold territory, suggesting the market is already pricing in execution risk ahead of June's drill results. The C$2.75 warrant strike remains the next concrete catalyst — achievable if the upcoming drilling data confirms the geological potential that Sprott is betting on.