The shipments in the first quarter of 2009 are resulting in gross revenue of $7.6 million for this product line in the same quarter.
These discussions focused mainly on alternatives to the existing contractual commitments, in the context of maintaining long-term relationships with customers in view of the unfavorable economic and market environment affecting the solar industry.
Timminco is in negotiations with all the customers with respect to their positions and the terms of future relationships, which includes quality, quantity and pricing for solar grade silicon. Customers of Timminco have paid deposits that were non-interest bearing pre-payments to be credited against future deliveries of solar grade silicon as per the contracts. As described in more detail in Timminco’s financial statements and management’s discussion and analysis, in the event of an early termination or completion of a supply contract without full usage of the deposit amount, any remaining balance on the deposit is to be repaid to the customer within a specific time period.
Timminco is discussing with its controlling shareholder, AMG Advanced Metallurgical Group N.V. (AMG), regarding it leading a potential equity offering for aggregate gross proceeds of $15.0 million. That offering is anticipated to be by way of a private placement, with AMG subscribing for a minimum of 50%, and around 100%, of the common shares that might be issued. Such offering will be subject to approval of the AMG’s supervisory board, execution of definitive documents and receipt of all required regulatory approvals, including approval of the Toronto Stock Exchange. Clarus Securities Inc. has been appointed to represent the company as the only agent for this offering.
