Kinross Buys Stake In Harry Winston

NEW YORK (AP) — Canadian diamond miner and retailer Harry Winston Diamond Corp. said Thursday Kinross Gold Corp. will invest $150 million to buy an interest in the company's Diavik diamond mine and an equity stake in the company.

Under the terms of the deal, Kinross will hold a nearly 20 percent stake in Harry Winston. The stake will be purchased through an equity private placement of 15.2 million shares of Harry Winston at $3 per share for a total of $45.6 million.

Kinross is buying a minority 22.5 percent interest in the partnership that holds Harry Winston's 40 percent interest in the diamond mine for $104.4 million.

Harry Winston said both companies have also agreed to "jointly consider other opportunities in the diamond mining industry."

Kinross said it will be offered a seat on the board of directors at Harry Winston after the deal closes.

Harry Winston said it will use the $150 million proceeds to repay existing bank debt and for general corporate purposes.