Aber and Tiffany Agree to changes to Shareholder and Diamond Supply Agreements
December 06 2004 - 5:15PM
PR Newswire (US)
Aber and Tiffany Agree to changes to Shareholder and Diamond Supply
Agreements TORONTO, Dec. 6 /PRNewswire-FirstCall/ -- ABER DIAMOND
CORPORATION (TSX- ABZ, NASDAQ-ABER) announces that it has agreed to
changes to its share subscription and diamond sales agreements with
Tiffany & Co. which have the effect of eliminating a market
price discount previously applied to sales by Aber to Tiffany and
removing restrictions to the sale of Tiffany's shares of Aber.
Tiffany purchased its 8 million share (13.9%) position from Aber in
a 1999 private placement that provided Aber with the funds to
proceed with the early stages of the development of the Diavik
Diamond Mine. A diamond sales agreement, completed at the same
time, provided Aber with an off-take arrangement essential to the
completion of a bank loan facility that provided the largest
portion of Aber's share of the Diavik Project capital requirement
without further equity dilution. For consideration paid by Tiffany
to Aber, certain restrictions on the re-sale of Tiffany's Aber
shares have been removed. Aber has also paid a fee to Tiffany to
cancel a discount to open market pricing of the future diamond
sales to be made to Tiffany under the diamond supply agreement
between the companies. The combined effect of these transactions is
a net payment of $5 million from Aber to Tiffany. The Share
Subscription Agreement entitled Tiffany to a representative on
Aber's Board of Directors. This position has been filled since 1999
by James N. Fernandez, Executive Vice President and CFO of Tiffany,
whose resignation from the board accompanies the above changes. Jim
has made an important contribution to Aber's development over the
years and provided valuable input from the diamond retail side of
the industry. This news release contains "forward looking
statements" within the meaning of the US Private Securities
Litigation Reform Act of 1995. When used in this release, words
such as "estimate", "expect", "anticipate", "projected", "planned",
"forecasted" and similar expressions are intended to identify
forward-looking statements -- which are, by their very nature, not
guarantees of Aber's future operational or financial performance,
and are subject to risks and uncertainties. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. Due to risks and
uncertainties, actual events may differ materially from current
expectations. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. About Aber
Aber Diamond Corporation is a specialist diamond company focusing
on the mining and retail segments of the diamond industry. The
Company supplies rough diamonds to the global market through its
40% ownership in the Diavik Diamond Mine, located off Lac de Gras
in Canada's Northwest Territories. Aber also holds a 51% interest
in Harry Winston Inc., the premier retailer of diamond jewelry.
DATASOURCE: Aber Diamond Corporation CONTACT: Robert A. Gannicott,
Chairman and Chief Executive Officer, (416) 362-2237; Amir Kalman,
Manager, Investor Relations, (416) 362-2237 (ext. 244)
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