TORONTO (miningweekly.com) – Shares in Canada Lithium Corp declined 9% on Tuesday, after the company said it would raise C$110-million in a bought-deal financing.

A syndicate of underwriters co-led by Scotia Capital and Macquarie Capital Markets Canada will buy 73,35-million shares at C$1,50 apiece, the company said.

Canada Lithium has also granted the underwriters an over-option to buy up to another 11-million shares.

The firm plans to use the funds raised to partly finance the construction of an openpit mine and processing plant at its Quebec Lithium project near Val d'Or and for working capital and general corporate purposes.

Initial construction is expected to start at the project in mid-2011, with commissioning scheduled to begin by the end of 2012.

Full production is targeted by 2013, and the project has an initial price tag of $202-million.

Shares in Canada Lithium fell to C$1,63 apiece by 15:59 in Toronto.

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