Timminco Limited
TSX : TIM

Timminco Limited

April 30, 2007 10:20 ET

Timminco Limited Announces Completion of Bought Deal Financing

TORONTO, ONTARIO--(CCNMatthews - April 30, 2007) - Timminco Limited (TSX:TIM) -

THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN THE UNITED STATES.

This press release does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States or by U.S. persons. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). They may not be offered or sold in the United States, or to or for the account or benefit of a U.S. Person, except pursuant to an exemption from the registration requirements of the U.S. Securities Act.

Timminco Limited ("Timminco" or the "Company") (TSX:TIM) has today completed its public offering (the "Offering") of 10,000,00 common shares at a price of Cdn$2.60 per common share for gross proceeds of Cdn$26,000,000. The Offering was sold on a bought deal basis and was co-led by Clarus Securities Inc. and Paradigm Capital Inc. as underwriters (the "Underwriters"). The Underwriters have also exercised their over-allotment option (the "Over-allotment Option") in full and purchased an additional 1,500,000 common shares at a price of Cdn$2.60 per common share for gross proceeds of Cdn$3,900,000. The total gross proceeds of the Offering was Cdn$29,900,000.

Timminco also announced that today, Safeguard International Fund, L.P. ("Safeguard") completed its conversion of the entire principal amount outstanding under the US$2.0 million convertible promissory note issued March 7, 2006 (the "First Note") to an affiliate of Safeguard into 5,601,000 common shares of the Company at a conversion rate of Cdn$0.40 per common share. The number and percentage of common shares now held by Safeguard and its affiliates, after giving effect to the conversion of the principal amount outstanding under the First Note into 5,601,000 common shares, the issuance of 10,000,000 common shares in connection with the Offering and the issuance of 1,500,000 common shares in connection with the exercise of the Over-Allotment Option, is 46,510,092 common shares, representing 50.4% of the total number of issued and outstanding common shares of the Company, being 92,368,614 common shares.

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.

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 value of its sales of high purity silicon, future demand for high purity silicon and the future pricing of such product.

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 and the final prospectus of the Company dated April 24, 2007 filed in connection with the Offering, 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's common shares are traded on the Toronto Stock Exchange under the symbol TIM.

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Contact Information

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