Timminco Completes $86M Financing

On September 27, 2007, Timminco Limited announced that it had completed the public offering of 4,360,291 common shares at a price of $8.50 per common share for gross proceeds of $37,062,474. The public offering was sold on a bought deal basis with an underwriting syndicate led by Clarus Securities Inc. and including Paradigm Capital Inc. The underwriters exercised their over-allotment option in full and purchased an additional 654,043 common shares at a price of $8.50 per common share for additional gross proceeds of $5,559,365. The total gross proceeds of the public offering was $42,621,839.

Timminco also announced that, concurrently with the public offering, it completed a private placement to AMG Advanced Metallurgical Group N.V., Timminco's controlling shareholder, of 5,136,140 common shares at a price of $8.50 per common share for gross proceeds of $43,657,190. The private placement included all of the common shares issuable under AMG's additional share option. After giving effect to the public offering and the private placement, AMG continues to own 50.6 per cent of the issued and outstanding shares of Timminco.

The total gross proceeds of the public offering and the private placement was $86,279,029. The net proceeds will be used primarily for significant production capacity expansion for solar grade silicon at the company's manufacturing facility located in Bécancour, Québec and to further the company's objective to increase the purity of production beyond the 99.999 per cent material presently produced. The balance of the net proceeds will be used for repayment of term bank debt and general corporate purposes.

Timminco was advised in this financing by a team from Fasken Martineau DuMoulin LLP that included Leslie Rose, John Sabetti, Daniel Batista and Krisztian Toth.

The underwriters for the public offering were represented by Cassels Brock & Blackwell LLP by a team comprised of Cameron Mingay, Jay King and Roopinder Mundi.