Timminco Signs New Contract; Shares Jump 24%

Timminco (TIMNF.PK) shares jumped 24% Thursday morning after the company announced that its wholly-owned subsidiary, Becancour Silicon Inc., has entered into an agreement to supply solar grade silicon to Q-Cells AG, the world's largest manufacturer of solar cells.

According to a release, Becancour Silicon will supply Q-Cells with contractually fixed supplies of 410 metric tons in 2008 and 3,000 metric tons in 2009 at undisclosed fixed prices. The deliveries start immediately.

The companies also agreed to wait until the end of July 2008 before negotiating a further contract on the delivery of up to 6,000 metric tons per year in the years 2010 to 2013. The price for these possible further supplies will be negotiated contingent upon market conditions. t Q-Cells will become BSI's largest customer for solar grade silicon in 2009.

This agreement represents Becancour Silicon's fifth long-term commercial contract for the sale of high purity silicon with Q-Cells become its largest customer for solar grade silicon in 2009.

In the past 52 weeks, shares in Timminco have risen from a low of C$0.65.