Timminco Limited
TSX : TIM

Timminco Limited

April 09, 2007 14:30 ET

Timminco Bought Deal Financing Increased to $26 Million

TORONTO, ONTARIO--(CCNMatthews - April 9, 2007) -

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

Timminco Limited ("Timminco") (TSX:TIM) is pleased to announce that the bought deal financing agreement announced earlier today has been increased by an additional 2,100,000 common shares. Under the revised agreement, Timminco will now issue a total of 10,000,000 common shares at a price of $2.60 per share, resulting in gross proceeds of $26,000,0000. The company and the underwriting syndicate, which is co-led by Clarus Securities Inc. and Paradigm Capital Inc. (the "Underwriters"), have also agreed to increase the size of the over-allotment option by 315,000 common shares, resulting in an over-allotment option to purchase up to an additional 1,500,000 common shares at a price of $2.60 per share, for a period of 30 days from closing. If the over-allotment option is exercised in full, the total gross proceeds of the offering will be $29,900,000.

Proceeds from the offering will be used primarily to expand the Company's high purity silicon facility at its wholly-owned subsidiary, Becancour Silicon Inc. and for general corporate purposes.

The completion of the offering is subject to certain conditions including Timminco receiving all necessary regulatory approvals. The offering is expected to close on or about April 26, 2007.

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 may contain forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Such statements include comments regarding the volume and value of sales contracts of its businesses, its ability to deliver under such contracts and the future pricing of its products.

There are financial and operational risks inherent in the business, which include, but are not limited to: commodity prices, currency exchange, interest rate, capital, credit, regulatory, political, operational and environmental risks. The Company takes specific measures to manage these risks, and any forward-looking statements in this news release were based on the assumption of no significant changes or trends with respect such risk factors. Although the Company 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. The Company disclaims any duty to update forward-looking statements other than through relevant future Management Discussions and Analyses.

ABOUT TIMMINCO

TIMMINCO LIMITED is an international company, a world leader in the production and marketing of alloy magnesium, silicon metal and specialty ferrosilicon, calcium and strontium alloys. The Company's products are used in a broad range of specialized industrial applications and industries such as engineered extruded products, chemical, pharmaceutical, electronics and automotive and metallurgical. The Company participates in the supply of aluminium wheels to high end European automobile manufacturers through its 47% equity interest in Fundo Wheels AS. The Company's common shares are traded on the Toronto Stock Exchange under the symbol TIM.

Contact Information

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