AMG Subsidiary Timminco announces approval of C$25 million debt
financing from Québec Government
Amsterdam, 7 July 2009 --- AMG Advanced Metallurgical Group N.V.'s
("AMG", EURONEXT AMSTERDAM: "AMG") 52.2% owned subsidiary, Timminco
Limited ("Timminco"; TSX: TIM) announced today that the Québec
Members of Cabinet have approved a proposed debt financing for
Bécancour Silicon Inc., a wholly-owned subsidiary of Timminco, by way
of a two-year term loan of C$25.0 million. This loan would be
provided by Investissement Québec under the Renfort program and
disbursed in full upon completion of the transaction. The funds
would be used for general working capital purposes.
"We are pleased by the Québec government's decision in favour of this
investment in our company," said René Boisvert, President and CEO of
Bécancour Silicon. "Bécancour Silicon has been a proud member of the
Bécancour community for 35 years. In addition to the strong
potential for our historical silicon metal business, our proprietary
process for producing solar grade silicon provides us with a
significant opportunity in the solar energy industry. These funds
will help position us to capitalize upon opportunities as our
customer demand recovers."
"The loan attributed today will help a key player in Québec's
industry, Bécancour Silicon, get through the worldwide economic
storm" declared Québec's Minister of Finance and Minister of Economic
Development, Innovation and Export Trade, Mr. Raymond Bachand.
"This announcement is an eloquent example of the Québec government's
commitment towards Québec businesses. I am very proud of it" added
Quebec's Minister of Transport, Mrs. Julie Boulet.
The proposed loan would be interest-bearing and include certain
financial and other covenants. It would also be secured by Bécancour
Silicon's assets and subordinated to the existing revolving credit
facilities provided by Timminco's senior secured lender, Bank of
America, N.A. The transaction is subject to execution of definitive
documents and satisfaction of other conditions, including consent of
Timminco's other secured lenders.
About Investissement Québec and the Renfort Program
Investissement Québec's mission is to promote the growth of
investment in Québec and thereby contribute to economic development
and job creation. The Renfort program was launched in December 2008
by Québec's Ministry of Economic Development, Innovation and Export
Trade (MEDIET) as a working capital and investment program designed
to stabilize successful companies experiencing temporary difficulties
because of the economic situation. This program has C$1.2 billion in
funding and offers loans and loan guarantees to companies in
operation for at least three years that carry out their main
activities in Québec.
About Timminco
Timminco produces solar grade silicon for the solar photovoltaic
energy industry. Using its proprietary, patent pending technology,
Timminco purifies silicon metal into solar grade silicon (also known
as upgraded metallurgical silicon) for use in the manufacture of
solar cells. Timminco also produces silicon metal, magnesium
extrusions and other specialty metals for use in a broad range of
industrial applications serving the aluminum, chemical,
pharmaceutical, electronics and automotive industries.
About AMG
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 majority 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, aluminum
master alloys and additives, chromium metal and ferrotitanium, used
by steel, aluminum, 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.
Timminco Limited is a majority controlled, publicly listed subsidiary
of AMG. Timminco is a leader in the production of upgraded
metallurgical silicon for the rapidly growing solar photovoltaic
energy industry. Timminco also produces silicon metal and magnesium
products for use in a broad range of industrial applications.
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.
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
Jonathan Costello
Vice President of Corporate Communications
jcostello@amg-nv.com
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