Timminco Limited
TSX : TIM

Timminco Limited

July 07, 2009 16:36 ET

Timminco Announces Quebec Government Authorization of $25 Million Debt Financing

TORONTO, ONTARIO--(Marketwire - July 7, 2009) - Timminco Limited ("Timminco" or the "Company") (TSX:TIM) announced today that the Quebec government has authorized Investissement Quebec to negotiate the terms and conditions of a proposed debt financing for Becancour Silicon Inc., a wholly-owned subsidiary of Timminco, by way of a two-year term loan of up to $25.0 million. This loan would be provided by Investissement Quebec under the Renfort program and disbursed in full upon completion of the transaction. The funds would be used for general working capital purposes.

"We are pleased with the Quebec government's decision in favour of this potential investment in our company," said Mr. Rene Boisvert, President and CEO of Becancour Silicon. "Becancour Silicon has been a proud member of the Becancour community for 35 years. In addition to the strong potential for our historical silicon metal business, our proprietary process for producing solar grade silicon provides us with a significant opportunity in the solar energy industry. These funds would help position us to capitalize upon opportunities as our customer demand recovers."

"The loan attributed today will help a key player in Quebec's industry, Becancour Silicon, get through the worldwide economic storm" declared Quebec's Minister of Economic Development, Innovation and Export Trade, Mr. Clement Gignac.

"This announcement is an eloquent example of the Quebec government's commitment towards Quebec businesses. I am very proud of it" added Quebec's Minister of Transport, Mrs. Julie Boulet.

The proposed loan would be interest-bearing and include certain financial and other covenants. It would also be secured by Becancour Silicon's assets and subordinated to the existing revolving credit facilities provided by Timminco's senior secured lender, Bank of America, N.A. The transaction is subject to execution of definitive documents and satisfaction of other conditions, including consent of Timminco's other secured lenders.

About Investissement Quebec and the Renfort Program

Investissement Quebec's mission is to promote the growth of investment in Quebec and thereby contribute to economic development and job creation. The Renfort program was launched in December 2008 by Quebec's Ministry of Economic Development, Innovation and Export Trade (MEDIET) as a working capital and investment program designed to stabilize successful companies experiencing temporary difficulties because of the economic situation. This program has $1.2 billion in funding and offers loans and loan guarantees to companies in operation for at least three years that carry out their main activities in Quebec.

About Timminco

Timminco produces solar grade silicon for the solar photovoltaic energy industry. Using its proprietary, patent pending technology, Timminco purifies silicon metal into solar grade silicon (also known as upgraded metallurgical silicon) for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding the proposed debt financing from Investissement Quebec. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies.
Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to: global economic conditions; future growth plans and strategic objectives; liquidity risks; limitations under existing credit facilities; long-term contracts for supplying solar grade silicon; solar grade silicon production cost targets; selling prices of solar grade silicon and silicon metal; achieving and maintaining the purity of solar grade silicon; production capacity expansion at the Becancour facilities; pricing and availability of raw materials for the silicon business; customer capabilities in producing ingots; limited history with the solar grade silicon business; dependence upon power supply for silicon metal production; protection of intellectual property rights; government and economic incentives; closure of the magnesium facilities and the completion of related proposed transactions; cost and availability of magnesium metal; dependence upon key customers of magnesium extruded and fabricated products; credit risk exposure; customer concentration; equipment failures; labour disputes; foreign currency exchange; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; transportation disruptions; conflicts of interest; interest rates; intellectual property infringement claims; new regulatory requirements; changes in tax laws; and climate change. These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2008, and Timminco's most recent Management's Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. In addition, the proposed debt financing remains subject to conditions as identified in this news release and there is no assurance that such financing will be completed on terms acceptable to Timminco if at all. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Sedar File Profile #00000838

Contact Information

  • Timminco Limited
    Robert Dietrich
    Executive Vice President - Finance and CFO
    (416) 364-5171
    (416) 364-3451 (FAX)
    rdietrich@timminco.com
    or
    The Equicom Group Inc.
    Lawrence Chamberlain
    (416) 815-0700 ext. 257
    (416) 815-0080 (FAX)