UPDATE: Harry Winston to Purchase BHP's Diamond Assets for US$500 M; Shares Down 2.2% at Midday
Harry Winston Diamond Corporation (HW.TO) has entered into share purchase agreements with BHP Billiton Canada Inc., and various affiliates to purchase all of BHP Billiton's diamond assets, including its controlling interest in the Ekati Diamond Mine as well as the associated diamond sorting and sales facilities in Yellowknife, Northwest Territories and Antwerp, Belgium.
The Ekati Diamond Mine consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. The cash purchase price is US$400 million for the Core Zone interest and US$100 million for the Buffer Zone interest, subject to adjustments in accordance with the terms of the share purchase agreements.
HW is now trading at $13.16, down 29 cents from yesterday's close. More than 76,000 shares have been traded.
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