TORONTO (miningweekly.com) – Shares in diamond-miner and high-end jewellery retailer Harry Winston Diamonds gained 35% on Friday, after the firm announced that Kinross Gold will buy just under 20% in the company.

Kinross will spend $150-million to buy 19,9% of Harry Winston, plus an effective 15% interest of the Diavik diamond mine, in Canada's Northwest Territories, in which Harry Winston holds 40%.

Toronto-based Harry Winston will use the money to repay debt, as well as to fund its share of capital expenditure at the Diavik mine, which is operated by 60% owner Rio Tinto.

Harry Winston shares rose C$0,80 apiece , to C$3,08 a share by 16:28 in Toronto. Despite the gains, the stock is still cheaper than the $3,00 a share that Kinross will pay for its stake.

Shares in the gold-miner, meanwhile, declined 3,7% on Friday, to C$22,28 apiece.

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