kinrossKinross is paying $3.00 US (around $3.75 Cdn) and I don't see it as a bad deal for HW at this stage. HW is over-leveraged right now and they needed to come up with their share of the capex in relation to the preparation for underground mining. They would have been forced to go to the market at the current share price and would have been forced to discount the shares to boot which would have driven the share-price down even further with added dilution.
At least this way they have gained a partner with extensive mining expertise, deep pockets and they were able to get a premium to the recent trading range of the shares. The shares were under pressure because the market knew that HW was in need of capital and debt equity is just not available right now. They were forced to do it this way and considering the position they were in this deal is good for HW - in my opinion.
We will find out in the morning if the market agrees.
Kinross will also be a useful in terms of further exploration potential as well. As I had mentioned before HW has alot of ground staked with another Diavik possibly waiting to be found. Plus this partnership was struck with the hint of further acquisitions of diamond developments to be pursued. There are several other diamond juniors who are having liquidity and cash-flow problems. Shore Gold is one that comes to mind. Trading at 30c right now but there are many others in need of a partner with financial strength.
HW may have given up a small piece of the pie but the pie will likely grow. I like the deal and I believe it was the best solution to a difficult situation.
OceanRanger