TORONTO, ONTARIO - May 7, 2010 - Timminco Limited ("Timminco" or the "Company" today announced that it has agreed to issue an additional approximately 4.0 million common shares on a private placement basis over and above the approximately 16.9 million shares announced on May 6, 2010. The additional shares, which will be issued at the same price of $0.65 per share, will result in additional gross proceeds of approximately $2.6 million, bringing the aggregate gross proceeds of the offering to approximately $13.6 million dollars.
All of the additional common shares will be issued to AMG Advanced Metallurgical Group N.V. ("AMG"), increasing AMG's total subscription to approximately 15.4 million common shares, representing approximately $10.0 million of the gross proceeds of the offering. The 11.4 million common share subscription by AMG announced yesterday is the maximum permitted by the insider participation rules of the Toronto Stock Exchange before June 14, 2010. The $2.6 million issue price payable for the additional shares will be deposited into escrow on the first tranche closing of the offering, which is expected to occur on or before May 21, 2010, and will be released to the Company upon issuance of the additional shares to AMG. The issuance of the additional shares is subject to execution of definitive documents and receipt of all necessary regulatory approvals, including approval of the Toronto Stock Exchange. AMG currently owns approximately 67.8 million common shares, representing approximately 38.6% of Timminco's total outstanding common shares. AMG's ownership will increase to approximately 42.3% after completion of both tranches of the offering.
About Timminco
Timminco is a producer of silicon metal for the chemicals industry 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.
All of the additional common shares will be issued to AMG Advanced Metallurgical Group N.V. ("AMG"), increasing AMG's total subscription to approximately 15.4 million common shares, representing approximately $10.0 million of the gross proceeds of the offering. The 11.4 million common share subscription by AMG announced yesterday is the maximum permitted by the insider participation rules of the Toronto Stock Exchange before June 14, 2010. The $2.6 million issue price payable for the additional shares will be deposited into escrow on the first tranche closing of the offering, which is expected to occur on or before May 21, 2010, and will be released to the Company upon issuance of the additional shares to AMG. The issuance of the additional shares is subject to execution of definitive documents and receipt of all necessary regulatory approvals, including approval of the Toronto Stock Exchange. AMG currently owns approximately 67.8 million common shares, representing approximately 38.6% of Timminco's total outstanding common shares. AMG's ownership will increase to approximately 42.3% after completion of both tranches of the offering.
About Timminco
Timminco is a producer of silicon metal for the chemicals industry 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.
