TORONTO, Mar 19, 2009 (Canada NewsWire via COMTEX News Network) --

Harry Winston Diamond Corporation (TSX-HW; NYSE-HWD) ("Harry Winston") is pleased to announce a strategic investment by Kinross Gold Corporation (TSX-K; NYSE-KGC) ("Kinross"), whereby Kinross will make a net investment of US$150 million to acquire an indirect interest in the Diavik diamond mine and a direct equity stake in the company. As part of the transaction the parties have agreed to jointly consider other opportunities in the diamond mining industry.

According to the terms of the agreement signed today, Kinross has agreed to subscribe for 15.2 million treasury shares from Harry Winston at a price of US$3.00 per share, being approximately 19.9% of the company's issued equity post the transaction. Kinross has the right to maintain this equity level by participating in future equity financings. In addition, Kinross has agreed to subscribe for new partnership units representing a 22.5% interest in the limited partnership which holds Harry Winston's 40% joint venture interest in the Diavik Diamond Mine, for a net effective subscription value of US$104.4 million. Following closing of the transaction, Kinross will be offered a seat on Harry Winston's Board of Directors.....

This new relationship will enable the company to access Kinross' mining expertise in a broad variety of geographic environments, as well as their financial strength, to complement the acknowledged diamond expertise of Harry Winston.

"We welcome this important investment by one of the world's leading mining companies," said Bob Gannicott, Chairman and CEO of Harry Winston. "We look forward to developing our relationship with Kinross as we build our company and consider new opportunities for future growth."....