Canadian billionaire Eric Sprott put another $6 million (US$4.32 million) into Max Power Mining (CSE: MAXX; US-OTC: MAXXF) by exercising warrants, raising his stake to 24.35% as the company advances its Lawson natural hydrogen project in Saskatchewan.
Sprott exercised more than 12 million warrants in raising his interest from 19.5%, Max Power reported Tuesday. The move brings his investment through financings and warrant exercises since March to about $45.6 million. Lawson is about 150 km northwest of Regina.
“The early warrant exercise further accelerates our commercial validation drill program, with fresh updates from the field expected shortly,” Max Power CEO Ran Narayanasamy said. “We are ahead of schedule, under budget, and delineating a very large natural hydrogen system as we triangulate the first deposit at the Lawson complex.”
Natural hydrogen program
Sprott’s latest investment deepens a growing bet on MAX Power and the emerging natural hydrogen sector. The billionaire investor, better known for his investments in precious metals explorers, has put about $45.6 million into the company through financings and warrant exercises since the spring as MAX Power works to determine whether its Lawson discovery can support commercial production.
The company’s multi-well drill program is investigating the “world’s first large-scale commercial discovery of natural hydrogen,” it says.
Clean energy potential
Though Sprott’s involvement is unusual, natural hydrogen has the potential to be produced without large amounts of electricity or related emissions and it has garnered the interest of many new investors in the energy sector.
The industry is still highly speculative, however, with many voicing concerns regarding sufficient concentrations and whether natural hydrogen can be produced in an economically viable way.
Max Power shares fell 4% to $3.20 apiece at mid-day Wednesday in Toronto, valuing the company at $578.2 million. The stock has traded in a 12-month range of 31¢ to $3.36.
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