Timminco Limited
TSX : TIM

Timminco Limited

September 27, 2007 09:40 ET

Timminco Completes $86 Million Financing

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Timminco Limited ("Timminco")(TSX:TIM) announced today that it completed the public offering of 4,360,291 common shares at a price of $8.50 per common share for gross proceeds of $37,062,474. The public offering was sold on a bought deal basis with an underwriting syndicate led by Clarus Securities Inc. and including Paradigm Capital Inc. The underwriters also exercised their over-allotment option in full and purchased an additional 654,043 common shares at a price of $8.50 per common share for additional gross proceeds of $5,559,365. The total gross proceeds of the public offering was $42,621,839.

Timminco also announced that, concurrently with the public offering, it completed a private placement to AMG Advanced Metallurgical Group N.V. ("AMG")(EURONEXT:AMG), Timminco's controlling shareholder, of 5,136,140 common shares at a price of $8.50 per common share for gross proceeds of $43,657,190. The private placement included all of the common shares issuable under AMG's additional share option. After giving effect to the public offering and the private placement, AMG continues to own 50.6% of the issued and outstanding shares of Timminco.

The total gross proceeds of the public offering and the private placement was $86,279,029. The net proceeds will be used primarily for significant production capacity expansion for solar grade silicon at the company's manufacturing facility located in Becancour, Quebec and to further the company's objective to increase the purity of production beyond the 99.999% material presently produced. The balance of the net proceeds will be used for repayment of term bank debt and general corporate purposes.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements concerning Timminco's business and operations. Timminco cautions that, by their nature, forward-looking statements involve risk and uncertainty and Timminco's actual results could differ materially from those expressed or implied in such statements. Such statements include comments regarding plans for solar grade silicon production capacity expansion and increasing the purity of production.

There are financial and operational risks inherent in the business, which include, but are not limited to: commodity prices, currency exchange, interest rates, capital, credit, regulatory, political, operational and environmental risks. Timminco takes specific measures to manage anticipated risks, and any forward-looking statements in this news release were based on the assumption of no significant changes or trends with respect to such risk factors. However, there can be no assurance that future developments affecting Timminco will be those anticipated by Timminco. Although Timminco maintains insurance against risks that are typical in its industry, such insurance may not provide adequate coverage under all circumstances. Reference should be made to the most recent Management Discussions and Analyses for a description of the major risk factors. Timminco disclaims any duty to update forward-looking statements other than through relevant future Management Discussions and Analyses.

ABOUT TIMMINCO

Timminco is a leader in the production of silicon metal for the electronics, chemical and aluminum industries. Timminco has also commenced production of solar grade silicon metal. Other businesses include the production and marketing of magnesium, calcium and strontium alloys and magnesium extruded and fabricated products. Timminco's products are used in a broad range of specialized industrial applications and industries such as electronics, solar energy, chemical, engineered extruded products, pharmaceutical, automotive and metallurgical. Timminco's common shares are traded on the Toronto Stock Exchange under the symbol TIM.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Contact Information

  • Timminco Limited
    Robert Dietrich, Executive Vice President,
    Finance and Chief Financial Officer
    (416) 364-5171
    (416) 364-3451 (FAX)
    Email: rdietrich@timminco.com