Kinross Gold sells interest in Canada’s largest diamond Mine in deal valued at $220 million

Kinross sells interest in Canadian diamond mine

NEW YORK — Kinross Gold Corp. on Wednesday sold its indirect interest in Canada’s largest diamond mine in a previously announced deal worth $220 million in cash, stock and a note.

The Toronto-based gold miner said it completed the sale of its portion of a joint venture that holds a 40 percent interest in Diavik Diamond Mine, located in Canada’s Northwest Territories.

The joint venture was with Harry Winston Diamond Corp., also based in Toronto.

Harry Winston bought out Kinross’s portion for $50 million cash, about 7.1 million of its own shares worth about $100 million, and a $70 million note that matures in 12 months. The note bears 5 percent annual interest and can be repaid in cash or additional Harry Winston shares.

Kinross’ 7.1 million shares in Harry Winston represent about 8.5 percent of the company’s outstanding common shares.

Kinross shares closed Wednesday up 33 cents, or 2.2 percent, at $15.63.

Harry Winston shares ended the session down 35 cents, or 3.5 percent, at $9.79. In aftermarket electronic trading the stock gained back 11 cents to $9.90.