Harry Winston buys back Diavik stake

by eyetee | September 20, 2010 12:00 am

SB_Diavik-winter-aerial-cro — Forty per cent of the Diavik mine in the Northwest Territories is once again in the hands of Harry Winston Diamond Corp., following a $220-million US deal with Kinross Gold.

Harry Winston Diamond Corp., has closed the $220-million US deal that will see it buy back its interest in the Diavik diamond mine from gold miner Kinross Gold.

The purchase price comprises $50 million (all figures US dollars) in cash, 7.1 million Harry Winston common shares valued at $100 million at the time the deal was announced, and a $70-million note payable in 12 months.

The note bears an interest of five per cent per annum and can be repaid in cash or shares under certain conditions.

Kinross now holds 7.1 million Harry Winston common shares, which represents about 8.5 per cent of the company’s issued and outstanding common shares.

Rio Tinto owns the balance of the Diavik mine and is its operator.

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Source URL: https://www.jewellerybusiness.com/news/harry-winston-buys-back-diavik-stake/