Amsterdam, September 27, 2007 —AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: AMG, ISIN: NL0000888691) today announced that its 50.6% owned subsidiary Timminco Limited (“Timminco”; TSX:TIM) completed the public offering of 4,360,291 common shares at a price of CAN $8.50 per common share for gross proceeds of CAN $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 also exercised their over-allotment option in full and purchased an additional 654,043 common shares at a price of CAN $8.50 per common share for additional gross proceeds of CAN $5,559,365. The total gross proceeds of the public offering was CAN $42,621,839.
Also, Timminco completed a private placement to AMG Advanced Metallurgical Group N.V. (“AMG”; Euronext: AMG) of 5,136,140 common shares at a price of CAN $8.50 per common share for gross proceeds of CAN $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% of the issued and outstanding shares of Timminco.
The total gross proceeds of the public offering and the private placement was CAN $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% material presently produced. The balance of the net proceeds will be used for repayment of term bank debt and general corporate purposes.
AMG, incorporated in the Netherlands, is a leading global specialty materials company offering highly engineered metallurgical products and advanced vacuum furnace systems to a broad range of end markets. AMG utilizes its proprietary know-how to supply sophisticated metals and materials through its production and sales activities in 12 countries on five continents. In addition, AMG designs, engineers and produces advanced vacuum furnace systems for growing industries globally. AMG’s metallurgical expertise has enabled it to capture leading market positions for many of its products and systems. Most of AMG’s products and systems are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG is organized into two business units: Advanced Materials and Engineering Systems.
The Advanced Materials unit 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, ferrotitanium, aluminium master alloys and additives, silicon metal (including solar grade), chromium metal and magnesium alloys, used by steel, aluminium, silicones and superalloy producers for aerospace, energy, electronics, optics, chemicals, construction and transportation applications.
The Engineering Systems unit designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG sells vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries.
AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, Canada, Mexico, Brazil 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. +1 610 293 2508
Chief Financial Officer
Neither this press release nor any copy of it is for publication or distribution, directly or indirectly, in, into or from the United States of America. This press release is for information only and does not constitute a prospectus or form part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment therefore.
No public offer of the shares has been or is being made in the United States and the information contained herein does not constitute an offering of securities for sale in the United States, Canada, Australia or Japan. No money, securities or other consideration is being solicited and, if sent in response to the information contained herein, will not be accepted. The shares mentioned herein have not been, and will not be, registered under the US Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the United States or to or for the account or benefit of US persons (as such term is defined in Regulation S under the Securities Act) absent registration or an exemption from registration.
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. With respect to Timminco, such statements include comments regarding the plans for production capacity expansion and plans for increasing the quality of solar silicon products . 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 our expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based is expressly disclaimed.