TORONTO, January 17, 2013 /PRNewswire/ --
Harry Winston Diamond Corporation (TSX:HW, NYSE:HWD) (the
"Company") reports that C. Fipke Holdings Ltd. ("Fipco") has
commenced an action in the Ontario Superior Court of Justice
against BHP Billiton Canada Inc. and certain of its affiliates
(collectively, "BHP Billiton"), the Company and its subsidiary,
Harry Winston Diamond Mines Ltd., as well as against Dr.
Stewart Blusson ("Blusson") and
Archon Minerals Limited ("Archon"). The claim alleges that
the offers made by BHP Billiton to Fipco do not comply with Fipco's
pre-emptive rights under the joint venture agreements for the Ekati
Mine, and that the Company was complicit in this alleged
non-compliance.
As disclosed in the Company's news release dated November 13, 2012, the Company has agreed to
purchase from BHP Billiton an 80% interest in the Core Zone Joint
Venture and a 58.8% interest in the Buffer Zone Joint
Venture. As contemplated in the share purchase agreements,
BHP Billiton offered its interests in the joint ventures to Fipco,
Blusson and Archon, the minority joint venture parties.
Fipco, which holds a 10% interest in each of the Core Zone and
Buffer Zone Joint Ventures, also alleges in its statement of claim
that, among other things, the Company's debt financing arrangements
for the acquisition have interfered with Fipco's ability to arrange
its own financing. The claim seeks an order of the court
prohibiting the Company from purchasing BHP Billiton's interests
unless and until BHP Billiton provides Fipco with revised
offers. Blusson, who holds a 10% interest in the Core Zone,
and Archon, which holds a 31.2% interest in the Buffer Zone, have
not issued a claim against BHP Billiton or the Company in respect
of this issue, and have advised that they do not intend to do
so.
The parties to the litigation have entered into an agreement
which provides for the trial and any appeal to be conducted on an
expedited basis, with a view to obtaining a final ruling no later
than April 15, 2013. The
agreement provides that, if such ruling is in favour of the Company
and BHP Billiton, the Company's purchase of BHP Billiton's joint
venture interests in the Ekati Mine may be completed before
May 15, 2013 without re-triggering
the pre-emptive right provisions of the joint venture
agreements.
The Company and BHP Billiton believe that the claim by Fipco is
entirely without merit, and intend to vigorously defend the action
in order to proceed with the purchase and sale of the Ekati
Mine. The parties are continuing with the regulatory approval
process, and the Company expects to be in a position to complete
the transaction following resolution of the litigation.
About Harry
Winston Diamond Corporation
Harry Winston Diamond Corporation is a diamond enterprise
with premium assets in the mining and retailing segments of the
diamond industry. Harry Winston
supplies rough diamonds to the global market from its 40 percent
ownership interest in the Diavik Diamond Mine. The
Company's luxury brand segment is a premier diamond jeweler and
luxury timepiece retailer with salons in key locations, including
New York, Paris, London, Beijing, Tokyo, Hong
Kong and Beverly Hills.
The Company focuses on the two most
profitable segments of the diamond industry, mining and retailing,
in which its expertise creates shareholder value. This unique
business model provides key competitive advantages; rough diamond
sales and polished diamond purchases provide market intelligence
that enhances the Company's overall performance.
Forward-Looking
Information
Information included herein that is not current or historical
factual information, including information about mining activities
at the Diavik Diamond Mine and estimated production from the Diavik
Diamond Mine, may constitute forward-looking information or
statements within the meaning of applicable securities laws.
Forward-looking information is based on certain factors and
assumptions regarding, among other things, mining, production,
construction and exploration activities at the Diavik Diamond Mine,
world and US economic conditions, future
diamond prices, and the level of worldwide diamond production.
Actual results may vary from the forward-looking
information. While the Company considers these
assumptions to be reasonable based on the information currently
available to it, they may prove to be incorrect. Forward-looking
information is subject to certain factors, including risks and
uncertainties which could cause actual results to differ materially
from what we currently expect. These factors include, among other
things, the uncertain nature of mining activities, including risks
associated with underground construction and mining operations,
fluctuations in diamond prices, and changes in US and world
economic conditions. Readers are cautioned not to place undue
importance on forward-looking information, which speaks only as of
the date of this disclosure, and should not rely upon this
information as of any other date. While the Company may elect to,
it is under no obligation and does not undertake to, update or
revise any forward-looking information, whether as a result of new
information, further events or otherwise at any particular time,
except as required by law. Additional information concerning
factors that may cause actual results to materially differ from
those in such forward-looking statements is contained in the
Company's filings with Canadian and United States securities regulatory
authorities and can be found
athttp://www.sedar.comandhttp://www.sec.gov,
respectively.
For further information:
For more information, please
visit http://www.harrywinston.com. or for investor
information, visit http://investor.harrywinston.com.
Contacts:
Mr. Richard Chetwode, Vice
President, Corporate Development - +44(0)7720970762
rchetwode@harrywinston.com
Ms. Laura Kiernan, Director,
Investor Relations - +1(917)297-4781 or
lkiernan@harrywinston.com
Ms. Kelley Stamm, Manager,
Investor Relations - +1(416)205-4380 or
kstamm@harrywinston.com
SOURCE Harry Winston Diamond Corporation
