Harry Winston Diamond Corporation HWD

HW and MPV are buys

[ljones1]

Great time to be accumulating HW -- trading at very attractive levels.    I will hold for the mid to long term -- expect to be out at somewhere b/w $15 and $20.

Have a look at TSX: MPV -- Mountain Province Diamonds -- recently announced 61 million carats in thei Gahcho Kue deposit in the Northwest Territories (where HW's Diavik mine is located).    Trading cheap at $1.80.    Worth picking some up at these levels.    Who knows...MPV may ultimately be taken over by HW.     De Beers grip on the project has been greatly loosened...see news below:

Mountain Province amends Gahcho JV deal with De Beers

2009-07-06 07:58 ET - News Release

Mr. Patrick Evans reports

MOUNTAIN PROVINCE DIAMONDS AND DE BEERS CANADA ENTER INTO REVISED AND RESTATED GAHCHO KUE JOINT VENTURE AGREEMENT

Mountain Province Diamonds Inc. has entered into an amended and restated joint venture agreement (2009 agreement) with De Beers Canada Inc. (jointly, the participants) in respect of the Gahcho Kue diamond project located in Canada's Northwest Territories. The 2009 agreement replaces the joint venture agreement entered into by the participants in 2002.

Key terms of the 2009 agreement include:

1. The participants' continuing interests in the Gahcho Kue project will be Mountain Province 49 per cent and De Beers 51 per cent, with Mountain Province's interest no longer subject to the dilution provisions in the 2002 agreement, except for normal dilution provisions which are applicable to both participants.
2. Each participant will market their own proportionate share of diamond production in accordance with their participating interest.
3. Each participant will contribute their proportionate share to the future project development costs.
4. Material strategic and operating decisions will be made by consensus of the participants for so long as each participant has a participating interest of 40 per cent or more.
5. The participants have agreed that the sunk historic costs to the period ending on Dec. 31, 2008, will be reduced and limited to $120-million.
6. Mountain Province will repay De Beers $59-million (representing 49 per cent of an agreed sum of $120-million) in settlement of the company's share of the agreed historic sunk costs on the following schedule:

• $200,000 on execution of the 2009 agreement (Mountain Province's contribution to the 2009 joint venture expenses to date of execution of the 2009 agreement);
• Up to $5.1-million in respect of De Beers's share of the costs of the 2009 feasibility study discussed below;
• $10-million upon the earlier of the completion of a feasibility study with a 15-per-cent IRR and/or a decision to build;
• $10-million following the issuance of the construction and operating permits;
• $10-million following the commencement of commercial production;
• The balance within 18 months following commencement of commercial production.

        7.    MPV has granted De Beers certain security for the repayment of the above amounts.

Under the terms of the 2009 agreement, the participants have undertaken to cause a feasibility study on the Gahcho Kue project to be commissioned as soon as possible. To this end, the joint venture has received a feasibility study proposal from JDS Energy and Mining, which is currently under consideration. The company expects to make a further announcement in this regard in the near future. MPV will pay 100 per cent of the costs of this feasibility study.

Commenting, Mountain Province president and chief executive officer, Patrick Evans, said: "Conclusion of the 2009 agreement represents a key milestone in the development of the Gahcho Kue project. Mountain Province and De Beers are jointly committed to advancing the development of the Gahcho Kue project as expeditiously as possible. The 2009 agreement provides a solid foundation for our renewed joint venture."

In parallel with the planned feasibility study, the joint venture is continuing to develop an environmental impact statement (EIS) suitable for submission to the Mackenzie Valley Environmental Impact Review Board. Substantive progress has been made on the EIS. Key to the completion of the EIS is a final project description which is expected to emerge during the course of the planned feasibility study.

Execution of the 2009 agreement brings to an end the strategic review announced in Stockwatch by Mountain Province on June 4, 2008. During the strategic review, Mountain Province explored a number of value-enhancing alternatives and concluded that the interests of Mountain Province shareholders would be best served by entering into the 2009 agreement.