Kinross Gold Corporation (TSX: K, NYSE: KGC) announced that, further to the Company's news release dated July 23, 2010, it has completed the sale of the 22.5% interest in the partnership holding Harry Winston Diamond Corporation's (TSX-HW; NYSE-HWD) ("Harry Winston") 40% interest in the Diavik Diamond Mines joint venture to Harry Winston for US$220 million. 

The purchase price is comprised of US$50 million cash, approximately 7.1 million Harry Winston common shares (with a value of approximately US$100 million at the time that the transaction was announced), and a note payable in the amount of US$70 million maturing 12 months from the date hereof. The note bears interest at a rate of 5% per annum and can be repaid in cash or, subject to certain limitations, shares issued by Harry Winston to Kinross. 

As a result of the previously completed sale of Kinross' 15.2 million common shares in Harry Winston, Kinross now holds approximately 7.1 million Harry Winston common shares, representing approximately 8.5% of Harry Winston's issued and outstanding common shares.

 

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