Timminco Limited

Timminco Limited

May 21, 2010 10:57 ET

Timminco Completes Second Tranche of Equity Financing

TORONTO, ONTARIO--(Marketwire - May 21, 2010) -


Timminco Limited ("Timminco" or the "Company") (TSX:TIM) announced today that, further to its news release of May 13, 2010, it has completed the second of three tranches of its private placement equity offering, which is expected to generate total gross proceeds of approximately $13.1 million. The second tranche of approximately 9.0 million common shares was issued at a price of $0.65 per share for gross proceeds of approximately $5.8 million. AMG Advanced Metallurgical Group N.V. ("AMG") acquired approximately 4.2 million common shares with the remaining shares issued to other investors. As a result, AMG now owns approximately 79.1 million common shares of Timminco, representing approximately 41.1% of Timminco's total issued and outstanding shares.

Timminco expects to complete the third tranche of the equity financing of approximately 4.1 million common shares at the same price per share, for additional gross proceeds of approximately $2.6 million, on or about June 14, 2010. AMG will acquire all of the common shares under the third tranche. Upon completion, AMG's ownership will increase to approximately 42.3%.

The net proceeds of the offering will be paid to the Company's senior secured lender to reduce a portion of the principal amount outstanding under a new term loan credit facility and to reduce a portion of the outstanding balance under the Company's revolving credit facility with the Bank of America, N.A. The amount repaid under the revolving credit facility may be reborrowed, and used for general corporate purposes, subject to continued compliance with, and availability under, these credit facilities.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in the United States. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any other state securities laws and may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Timminco

Timminco is a producer of silicon metal for the chemicals industry (used in silicones, as well as in polysilicon for electronics and solar energy) and the aluminium industry. The Company is also a producer of solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar energy industry.

Cautionary Notes

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 nature and amount of the equity offering, certain investors' participation in such offering, the timing and satisfaction of conditions for closing the offering, and use of proceeds from the offering. 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: liquidity risk; global economic uncertainty; credit risk; pricing and availability of raw materials; silicon metal selling prices; customer concentration; power supply and electricity prices; production interruptions; transportation disruptions; limited history with solar grade silicon; solar grade silicon selling prices; customer commitments for solar grade silicon; solar grade silicon production costs; quality of solar grade silicon; producing ingots with Timminco's solar grade silicon; protection of intellectual property rights; expansion of solar grade silicon production capacity; class action lawsuits; closure of former magnesium facilities; foreign exchange; investment in Applied Magnesium; interest rate risk; financing for capital expenditures; environmental liabilities; relationships with AMG; 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; intellectual property infringement claims; new regulatory requirements; labour disputes; and changes in tax laws.
These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2009, and in Timminco's most recent Management's Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. 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)
    The Equicom Group Inc.
    Lawrence Chamberlain
    (416) 815-0700 ext. 257
    (416) 815-0080 (FAX)