Timminco Limited
TSX : TIM

Timminco Limited

September 10, 2007 08:36 ET

Timminco Limited Announces $65 Million Financing

TORONTO, ONTARIO--(Marketwire - Sept. 10, 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 today that it has agreed to issue a total of 7,650,000 common shares at a price of $8.50 per share for aggregate gross proceeds of approximately $65 million. Timminco has entered into a bought deal financing agreement to issue 3,779,100 common shares by way of a short form prospectus, at a price of $8.50 per share, resulting in gross proceeds of approximately $32 million. In addition, AMG Advanced Metallurgical Group N.V. ("AMG"; Euronext: AMG) has agreed to subscribe, by way of private placement and subject to regulatory approval, for 3,870,900 common shares at the same price per share, resulting in gross proceeds of approximately $33 million. After giving effect to the bought deal and private placement financings, AMG will continue to own 50.6% of the issued and outstanding shares of Timminco.

The underwriting syndicate is led by Clarus Securities Inc. and includes Paradigm Capital Inc. (the "Underwriters"). Timminco has provided the Underwriters with an over-allotment option to purchase up to an additional 566,865 common shares at a price of $8.50 per share for a period of 30 days from closing. Timminco has also provided AMG with the option to purchase up to an additional 580,635 common shares, at the same price per share, for a period of 30 days from closing, to the extent that the Underwriters' over-allotment option is exercised. The exercise of these options in full would result in total gross proceeds of approximately $75 million.

Construction of the new 3,600 metric ton solar silicon plant at Timminco's wholly-owned subsidiary, Becancour Silicon Inc. ("Becancour"), is proceeding on plan. The proceeds of the present financing will be used for major production capacity expansion in light of increased demand for Becancour's products. The proceeds will also be used to further Becancour's objective to increase the quality of its production beyond the 99.999% ("five nines") material presently produced. The balance of the proceeds will be used for general corporate purposes. The completion of this financing is subject to certain conditions including Timminco receiving all necessary regulatory approvals. Closing is expected on or about September 27, 2007.

The financing is subject to Toronto Stock Exchange approval.

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 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 status of construction of a new 3,600 metric ton solar silicon plant, plans for production capacity expansion, plans for increasing the quality of solar silicon products and timing of completion of the financing.

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. The Company 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 the Company will be those anticipated by the Company. 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 a leader in the production of silicon metal for the electronics, chemical and aluminum industries. The Company, through Becancour Silicon Inc., has also commenced production of solar grade silicon metal. Other businesses of the Company include its leading global position as a producer and marketer of magnesium, calcium and strontium alloys and magnesium extruded and fabricated products. The Company'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. 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 - Finance
    and Chief Financial Officer
    (416) 364-5171
    (416) 364-3451 (FAX)
    Email: rdietrich@timminco.com