08:41 AM EDT, 05/23/2018 (MT Newswires) -- Nemaska Lithium (NMX.TO) said late Tuesday it intends to raise $360 million through a bought-deal financing and private placement to fund development of its Whabouchi lithium mine project in northern Quebec.

The company said it will sell 280 mln shares priced at $1 to an underwriting syndicate led by National Bank Financial, BMO Capital Markets and Cantor Fitzgerald Canada. It will sell a further 80 million shares at the same price to an unidentified institutional buyer.

The money will be used to develop the Whabouchi project, with Nemaska says is among the world's richest lithium spodumene deposits.

"This project financing package, which covers capital expenditures of both the Whabouchi mine and Shawinigan electrochemical plant, project contingencies, working capital requirements and financing costs will ensure the future of Nemaska Lithium, Guy Bourassa, the company's chief executive, said in a statement. "This will also allow the corporation to stay on target to initiate the commissioning of the Whabouchi mine by second half of calendar year 2019."

The company's shares closed at $1.18 Tuesday on the Toronto Stock Exchange. The shares have traded between $0.95 and $2.44 over the past 12 months.

Price: 1.18, Change: -0.09, Percent Change: -7.09