Canadian billionaire Eric Sprott invested another $6 million (US$4.32 million) in Max Power Mining (CSE: MAXX; US-OTC: MAXXF) by exercising warrants, increasing his stake to 24.35% as the company advances its Lawson natural hydrogen project in Saskatchewan.

Max Power said Tuesday that Sprott exercised more than 12 million warrants, lifting his ownership from 19.5%. The company said the latest move brings his total investment through financings and warrant exercises since March to about $45.6 million. Lawson is about 150 km northwest of Regina.

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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 adds to a growing commitment to MAX Power and the emerging natural hydrogen sector. Better known for his investments in precious metals explorers, the billionaire has put about $45.6 million into the company through financings and warrant exercises since the spring as MAX Power seeks to determine whether its Lawson discovery can support commercial production.

The company says its multi-well drill program is investigating the “world’s first large-scale commercial discovery of natural hydrogen.” The project’s progress matters beyond a single company because natural hydrogen is still an early-stage exploration theme, and each drill update helps define whether the concept can move from geological interest toward a repeatable resource model.

Clean energy potential

Sprott’s involvement is unusual, but natural hydrogen has attracted attention from new investors in the energy sector because it could potentially be produced without large amounts of electricity or related emissions. That potential is part of why the sector has drawn interest, even as it remains highly speculative and key questions remain about concentrations, recoverability and whether natural hydrogen can be produced economically at scale.

Max Power shares fell 4% to $3.20 apiece at mid-day Wednesday in Toronto, giving the company a market value of $578.2 million. The stock has traded in a 12-month range of 31¢ to $3.36.