Canada Lithium Corp shares were marked down more than 8% on Tuesday on massive volumes, after announcing bought-deal financing that investors thought were selling the company cheaply.

Mining operations continued at a reduced level and approximately 100,000 tonnes of ore remain on stockpile at the crusher.

It has signed a three-year distributorship agreement with Marubeni Corporation, one of Japan's largest commodities trading companies.

The U.S. decision last month to launch a Renewable Energy and Energy Efficiency Export initiative should turn out to be yet another boon for lithium producers, who are or will be trying to sell into a growing lithium ion battery market for technological and electric car uses.

Toronto's Canada Lithium is arranging a $110-million bought deal financing that is earmarked for partial development of its Quebec lithium mine 60 km north of Val d'Or, Canadian Mining Journal reports.