Amsterdam, 24 March 2010 — AMG Advanced Metallurgical Group N.V.’s (“AMG,” EURONEXT AMSTERDAM: “AMG”) 42.5% owned affiliate, Timminco Limited (“Timminco”; TSX: TIM) announced it has agreed with Q-Cells SE (“Q-Cells”), a solar grade silicon customer of Timminco’s wholly-owned subsidiary Bécancour Silicon Inc. (“Bécancour”), to issue approximately 15.9 million common shares of Timminco as full and final settlement of substantially all of the outstanding liability of approximately €9.7 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 €0.5 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 €8.8 million of the outstanding deposits received by Bécancour at that time and which were repayable upon termination of those contracts. Under the terms of the Repayment Liability, Bécancour was required to repay the principal and accrued interest on such deposits in quarterly instalments 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 C$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 €525,000. The note will be a direct, unsecured obligation of Timminco, payable in nine equal monthly instalments starting April 30, 2010 with the final payment due on December 31, 2010.
AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns interests in publicly-listed companies Timminco Limited (TSX: “TIM”) and Graphit Kropfmühl AG (Deutsche Börse: GKR.DE).
The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminium master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminium, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.
Timminco Limited is a publicly listed affiliate of AMG. Timminco produces silicon metal for the chemical, aluminium, electronic and solar industries. Timminco also produces solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar energy industry.
AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4901
Vice President of Corporate Communications
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.