Canadian Mining Journal

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OWNERSHIP SHIFT: Harry Winston ups Diavik share to 40%

NORTHWEST TERRITORIES - Kinross Gold of Toronto has agreed to sell its interests in the Diavik diamond mine to...



NORTHWEST TERRITORIES – Kinross Gold of Toronto has agreed to sell its interests in the Diavik diamond mine to Harry Winston Diamond Corp. in a deal worth US$220 million. The arrangement will solidify Harry Winston’s 40% interest in the joint venture near Lac de Gras. The remaining 60% is held by British multi-national Rio Tinto.

Kinross is selling its 22.5% interest in the partnership holding Harry Winston’s 40% interest. The gold company will receive US$50 million in cash, 7.1 million Harry Winston common shares worth approximately US$100 million, and a note payable in the amount of US$70 million. The deal is subject to the normal shareholder and regulatory approvals.

The Diavik team won this year’s mine rescue competition for the Northwest Territories and Nunavut. More details, including the 2009 sustainable development report, are available at www.Diavik.com.