Key Takeaways
Billionaire resource investor Eric Sprott purchased 1 million additional shares of Max Power Mining Corp. (CSE: MAX) for $2.02 million, deepening his investment in the natural hydrogen explorer as its stock trades near record highs.
"The Shares were acquired for investment purposes," a formal statement on the transaction said. "Mr. Sprott has a long-term view of the investment and may acquire additional securities... or sell the securities... in the future depending on market conditions."
The transaction, executed on the Canadian Securities Exchange on May 13, involved 1,000,000 common shares at an average price of $2.0219 each, according to an early warning report. The purchase lifts Sprott's total holdings to 18,848,979 shares and 12,138,548 warrants. This represents 12.8% of the outstanding shares, and 19.5% on a partially-diluted basis assuming all his warrants are exercised.
Sprott's vote of confidence comes after Max Power shares have already surged 324% year-to-date, hitting a new annual high of C$2.40 just a day before his latest purchase. The rally has been fueled by the company's pivot to developing its Lawson natural hydrogen discovery in Saskatchewan, a project that attracted C$20.5 million in financing in March.
This is Sprott’s second significant investment in the company in as many months. He participated in the March financing, contributing C$4.6 million to help fund the company's exploration and drilling programs.
The continued buying from a prominent resource investor signals strong conviction in Max Power's strategy to commercialize natural hydrogen, a nascent but potentially high-growth segment of the energy market. Investors will now watch for results from the company's expanded seismic programs and a planned confirmation drill at its Lawson property to validate the asset's potential.
This article is for informational purposes only and does not constitute investment advice.
