Timminco Converts Repayment Liability into Equity

Timminco Converts Repayment Liability into Equity 
TORONTO, ONTARIO -- (Marketwire) -- 03/24/10 --  Timminco Limited
("Timminco") (TSX: TIM) announced today it has agreed with Q-Cells SE
("Q-Cells"), a solar grade silicon customer of Timminco's
wholly-owned subsidiary Becancour Silicon Inc. ("Becancour"), to
issue approximately 15.9 million common shares of Timminco as full
and final settlement of substantially all of the outstanding
liability of approximately EUR9.7 million currently due to Q-Cells
under the repayment schedule agreed upon in May 2009 (the "Repayment
Liability"). Upon completion of the issuance of the common shares,
which represent just under 10% of Timminco's current issued and
outstanding shares, the balance of the Repayment Liability will be
approximately EUR0.5 million. Timminco has also agreed with Q-Cells
that this amount will be fully repaid in cash during 2010. 
The Repayment Liability originally resulted from the settlement of
claims in May 2009 relating to the termination of long-term supply
contracts signed with Q-Cells in 2008, including repayment of
approximately EUR8.8 million of the outstanding deposits received by
Becancour at that time and which were repayable upon termination of
those contracts. Under the terms of the Repayment Liability,
Becancour was required to repay the principal and accrued interest on
such deposits in quarterly installments throughout 2010 and to pay
interest at 12% on a monthly basis on the outstanding amount. No cash
payments have been made to date in respect of the Repayment
Liability. 
The issuance of the common shares to Q-Cells, which is on a private
placement basis at a price of $0.80 per share, is subject to receipt
of all necessary regulatory approvals, including approval of the
Toronto Stock Exchange. The closing of the transaction is expected to
occur on or about March 26, 2010. All common shares issued to Q-Cells
will be subject to a four-month hold period, effective from the date
of issuance. 
The remaining cash repayment will be evidenced by a promissory note
issued to Q-Cells in the amount of EUR525,000. The note will be a
direct, unsecured obligation of Timminco, payable in nine equal
monthly installments starting April 30, 2010 with the final payment
due on December 31, 2010. 
About Timminco 
Timminco produces silicon metal for the chemical (silicones),
aluminum and electronic / solar industries. Timminco also produces
solar grade silicon, using its proprietary technology for purifying
silicon metal, for the solar photovoltaic 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
Repayment Liability, and the issuance of Timminco common shares and
the Note.  
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, 2008, 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 
Contacts:
Timminco Limited
Robert Dietrich
Executive Vice President - Finance and CFO
(416) 364-5171
(416) 364-3451 (FAX)
rdietrich@timminco.com 
The Equicom Group Inc.
Lawrence Chamberlain
(416) 815-0700 ext. 257
(416) 815-0080 (FAX)
lchamberlain@equicomgroup.com
 
 
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