Canada Lithium shares creep higher

Canada Lithium Corp. (CLQ-T) has been moving up on big volume today after Bank of Nova Scotia and Caterpillar Financial Services agreed to provide a $75-million, five-year debt facility for the company's Québec Lithium open-pit mine and process plant.

"The agreement looks great," says Matt Gowing of Mackie Research. "[It's] a non-dilutive financing to finish building the mine."

He calls the stock a 'speculative buy' with a $1.00 target

Canada Lithium's stock has risen 6 cents to trade at 75 cents on volume of more than 1.6 million shares.

The debt facility will be supported by a financial guarantee from Quebec's Investissement Québec. In addition to the debt facility, Cat Financial will provide up to $17 million US lease financing for the mobile mining equipment.

Construction of the $207 million mine near Val d'Or, the heart of the Québec mining industry began, last August 2011. The company says its mine and on-site processing plant will eventually be able to produce approximately 20,000 tonnes of battery-grade lithium carbonate and that sales of are set to begin in the first quarter of 2013.