The Harry Winston Diamond Corporation announced that it has reached an agreement in principle to purchase from Kinross Gold Corporation its 9% indirect interest in the Diavik Joint Venture, giving it a 40% stake in the diamond mine, Market Wire reported.

According to the reports, the deal is worth as estimated $220 million – $50 million in cash, payable at closing, plus the issuance to Kinross of approximately 7.1 million treasury Harry Winston common shares and a promissory note in the amount of $70 million, maturing one year from the date of closing.

Kinross Gold, on its part, confirmed that it has reached an agreement to sell its existing holding of approximately 15 million common shares of Harry Winston, which will give the miner an 8.5% direct ownership interest in Harry Winston.

Harry Winston Diamond Corp CEO Robert Gannicott said that, "The transaction represents an opportunity for Harry Winston to consolidate its interest in the Diavik mine, Canada's largest diamond producer and one of the most profitable diamond mines in the world."