UPDATE 1-Canada Lithium’s shares slide on bought-deal financing

* To offer about 73.4 mln shares at C$1.50/share

* Says to raise gross proceeds of C$110 mln

* To use proceeds for construction at Quebec project

Jan 11 (BestGrowthStock) – Canada Lithium Corp (CLQ.TO: ) said it
would raise about C$110 million ($110.7 million) via a
bought-deal financing agreement, sending its shares down as
much as 14 percent.

The Toronto-based specialty metals mining company said a
syndicate of underwriters, led by Scotia Capital Inc and
Macquarie Capital Markets Canada, agreed to buy about 73.4
million shares at C$1.50 per share, a 17 percent discount to
the stock’s Monday closing price.

The underwriters also have the option to acquire up to an
additional 11 million shares, for gross proceeds of an about
$16.5 million.

The company said it intends to use the net proceeds to
partially finance construction of an open-pit mine and
processing plant at its Quebec Lithium Project near Val d’Or,
Quebec.

Shares of Canada Lithium fell to a low of C$1.54 on Tuesday
morning, before paring some losses to trade at C$1.60. The
stock was the second most actively traded on the Toronto Stock
Exchange with about 10 million shares changing hands.
($1=.9935 Canadian Dollar)
(Reporting by Abhiram Nandakumar in Bangalore; Editing by
Roshni Menon)