Gold miner Kinross Gold says it has agreed in principle to sell its 19.9 per cent stake in Harry Winston to a group of financial institutions for $220 million in cash, shares, and debt.
The Toronto-based company is also selling nine per cent of its interest in the Diavik mine back to Harry Winston, netting it about $400 million from its initial $150-million investment 16 months ago. The agreement means Harry Winston is taking back its 40 per cent ownership of the mine. Rio Tinto owns the balance and is Diavik’s operator.
The deal leaves Kinross with an 8.5 per cent ownership in Harry Winston.
“The transaction represents an opportunity for Harry Winston to consolidate its interest in the Diavik mine, Canada’s largest diamond producer and one of the most profitable diamond mines in the world,” said the company’s chair and chief executive officer (CEO) Robert Gannicott.
