Western Lithium Canada Corp said it would raise up to C$15.2 million in private placement to fund ongoing engineering and development studies for the company's lithium project in Nevada.

The company said it would issue 16 million units at 95 Canadian cents apiece, a discount of 5 percent to its Tuesday closing price, to a group of underwriters, led by GMP Securities and Byron Capital Markets.

Each unit will consist of one common share and one-half of a common share purchase warrant, which will entitle the holder to purchase an additional common share for a period of eighteen months at a price of C$1.25 per warrant, the company said in a statement.

Shares of the Vancouver-based company closed at C$1.00 on the Toronto Venture Exchange.

(Reporting by Amit Kumar in Bangalore; Editing by Ratul Ray Chaudhuri)