Harry Winston Diamond Restore 40% Diavik Stake for $220M

Harry Winston Diamond Corporation has closed the purchase of the 9% indirect interest in the Diavik Joint Venture from Kinross Gold Corporation. With this transaction completed, Harry Winston Diamond Corporation's ownership interest in the Diavik is back to 40%.

The aggregate purchase price for this transaction was $220 million. Kinross received $50 million in cash, a promissory note of $70 million, plus the issuance of approximately 7.1 million treasury common shares of the company.

The promissory note will bear an annual interest rate of 5% with a maturity date of August 25, 2011. It can be repaid in cash or, subject to certain limitations, treasury common shares issued by Harry Winston Diamond to Kinross.