This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Harry Winston Buys BHP Billiton Stake In Mine

NEW YORK (AP) â¿¿ Shares of Harry Winston Diamond will spend $500 million to acquire a stake in in a Canadian mine belonging to BHP Billiton Canada, the company said Tuesday.

The acquisition includes BHP Billiton's controlling interest in the Ekati diamond mine in the country's Northwest Territories, along with diamond sorting and sales facilities in Canada and Belgium.

The Ekati mine includes a "core zone," which includes the current operating mine, and a "buffer zone," an adjacent area with both development and exploration potential. The two zones are operated under separate joint venture agreements. Harry Winston will pay $400 million for the core zone interest and $100 million for the buffer zone interest.

The Ekati mine, which began production in 1998, includes both open pit and underground operations. It's also located near the Diavik diamond mine, in which Harry Winston holds a 40 percent interest.

The Ekati mine has produced an average of about $750 million dollars of rough diamonds per year over the last five years. Over that period, sales from the core zone represented about 6 percent of world rough diamond supply by value.

BHP Billiton Canada Inc. holds an 80 percent interest in the core zone and a 58.8 percent interest in the buffer zone, with the rest held by minority joint venture parties. The deals are expected to close before the end of March. Harry Winston said it plans to pay for the acquisitions with cash on hand and new debt financing.

Shares of Harry Winston Diamond Corp. shares fell 45 cents, or 3 percent, to $13 in morning trading.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs