The Company and one such customer have mutually agreed to terminate the existing supply agreement
The Company and one such customer have mutually agreed to terminate the existing supply agreement, which contemplated shipments of approximately 1,150 mt over a term of 18 months as originally announced on July 10, 2008. The Company has also agreed to issue approximately 10.0 million common shares of Timminco, representing approximately 7.5% of Timminco’s current issued and outstanding shares, as full and final settlement of the outstanding deposit of approximately $20.5 million due to this customer under the terminated supply agreement. The issuance of these common shares is subject to receipt of all necessary regulatory approvals, including approval of the Toronto Stock Exchange.
With this agreement, Timminco has concluded settlement negotiations with all of its solar grade silicon customers who had advanced deposits against future shipments of solar grade silicon in 2008 and who had claimed earlier this year that their contracts were terminated.
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 for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.