Firebird Global Master Fund, Ltd. discloses its position in Archangel Diamond Corporation



    GRAND CAYMAN, June 27 /CNW Telbec/ - Firebird Global Master Fund, Ltd.
("FGMF") announces that on June 24, 2008, it acquired, with its joint actors,
ownership of an aggregate 24,000,000 subscription receipts of Archangel
Diamond Corporation (TSX-V: AAD) ("Archangel") (the "Subscription Receipts")
pursuant to a private placement of 137,920,000 Subscription Receipts (the
"Private Placement Offering"), distributed as follows: FGMF acquired ownership
of 12,000,000 Subscription Receipts, Firebird Avora Fund Ltd. acquired
ownership of 3,200,000 Subscription Receipts, Firebird New Russia Fund Ltd.
acquired ownership of 1,800,000 Subscription Receipts, Firebird Republics Fund
Ltd. acquired ownership of 1,400,000 Subscription Receipts, Firebird Fund Ltd.
acquired ownership of 1,600,000 Subscription Receipts and Firebird Global
Master Fund II, Ltd. acquired ownership of 4,000,000 Subscription Receipts.
    The Private Placement Offering was made in connection with Archangel's
proposed acquisition from OAO LUKOIL (the "Proposed Acquisition"), pursuant to
a share purchase agreement dated April 15, 2008, of a 49.99% interest in OAO
Arkhangelskoe Geologodobychnoe Predpriyatie (the holder of the license to
explore and mine the Verkhotina license area). Completion of the Proposed
Acquisition is subject to certain terms and conditions stated in a press
release issued by Archangel on April 16, 2008 (the "Escrow Release
Conditions").
    Each Subscription Receipt will be automatically exchanged, without
payment of any additional consideration, for one unit of Archangel (an
"Underlying Unit") upon satisfaction of the Escrow Release Conditions. Each
Underlying Unit comprises one common share of Archangel (the "Common Shares")
and one-half of one common share purchase warrant of Archangel (each whole
warrant, a "Warrant") having an exercise price of CDN$1.50 per Warrant with a
term of 24 months from the date of issue.
    If the Escrow Release Conditions are not satisfied by October 17, 2008,
the escrowed funds with respect to the Private Placement Offering (plus any
interest accrued thereon) will be returned to holders of Subscription Receipts
and the Subscription Receipts will be cancelled.
    With the acquisition of the Subscription Receipts, if the Proposed
Acquisition is completed, FGMF's and its joint actors' securityholding
percentage in Archangel will have increased by 3.98% since the last report
dated June 9, 2006, assuming the exercise of the Warrants by FGMF and its
joint actors and that no other additional Common Shares are issued at such
time.
    Currently, without taking into consideration the acquired Subscription
Receipts, the aggregate number of securities of Archangel held by FGMF and its
joint actors is 16,138,131 Common Shares, distributed as follows: FGMF holds
9,402,200 Common Shares, Firebird Avora Fund Ltd. holds 2,390,531 Common
Shares, Firebird New Russia Fund Ltd. holds 1,635,000 Common Shares, Firebird
Republics Fund Ltd. holds 2,172,400 Common Shares and Firebird Fund Ltd. holds
538,000 Common Shares. Firebird Global Master Fund II, Ltd. does not currently
hold any securities of Archangel. The 16,138,131 Common Shares currently held
by FGMF and its joint actors represent approximately 18.98% of the currently
outstanding Common Shares.
    If the Proposed Acquisition is completed, FGMF and its joint actors will
have ownership and control over an aggregate of 40,138,131 Common Shares,
distributed as follows: FGMF will hold 21,402,200 Common Shares, Firebird
Avora Fund Ltd. will hold 5,590,531 Common Shares, Firebird New Russia Fund
Ltd. will hold 3,435,000 Common Shares, Firebird Republics Fund Ltd. will hold
3,572,400 Common Shares, Firebird Fund Ltd. will hold 2,138,000 Common Shares
and Firebird Global Master Fund II, Ltd. will hold 4,000,000 Common Shares,
representing, in the aggregate, approximately 18.00% of the then estimated
outstanding Common Shares, assuming that no other additional Common Shares are
issued at such time. FGMF and its joint actors will also have ownership of
12,000,000 Warrants.
    In addition, assuming the exercise of the Warrants by FGMF and its joint
actors and that no other additional Common Shares are issued at such time, the
aggregate number of Common Shares which would be held by FGMF and its joint
actors would be 52,138,131 Common Shares, distributed as follows: FGMF would
hold 27,402,200 Common Shares, Firebird Avora Fund Ltd. would hold
7,190,531 Common Shares, Firebird New Russia Fund Ltd. would hold
4,335,000 Common Shares, Firebird Republics Fund Ltd. would hold
4,272,400 Common Shares, Firebird Fund Ltd. would hold 2,938,000 Common Shares
and Firebird Global Master Fund II, Ltd. would hold 6,000,000 Common Shares,
representing, in the aggregate, approximately 22.62% of the then estimated
outstanding Common Shares, including the Common Shares deemed to be acquired
pursuant to the exercise of the Warrants.
    The number and percentage of Common Shares held by FGMF and its joint
actors would remain the same as disclosed above in the sixth paragraph in the
event the Escrow Release Conditions are not satisfied by October 17, 2008 as
the escrowed funds with respect to the Private Placement Offering (plus any
interest accrued thereon) would be returned to holders of Subscription
Receipts and the Subscription Receipts would be cancelled.
    FGMF and its joint actors paid an aggregate CDN$30,408,000
(US$30,000,000) to acquire the Subscription Receipts at an approximate price
of CDN$1.27 (US$1.25) per Subscription Receipt.
    The Subscription Receipts, the Underlying Units, the Common Shares, the
Warrants and the underlying Common shares to the Warrants are subject to a
hold period expiring on October 25, 2008.
    The Subscription Receipts were acquired as part of the Private Placement
Offering for passive investment purposes. FGMF and its joint actors may, from
time to time, acquire additional securities of Archangel, may continue to hold
their present position or may dispose of their securities.

    FGMF is a contrarian portfolio equity fund that invests in markets
throughout the world.

    This press release is being issued in order to comply with the disclosure
requirements under applicable securities legislation. This press release is
not an admission that FGMF owns or controls any described securities or is a
joint actor with anyone else.




For further information:

For further information: or to obtain a copy the corresponding report,
contact: Mr. James Passin, Director, Firebird Global Master Fund, Ltd., (212)
698-9260, jpassin@fbird.com

Organization Profile

Firebird Global Master Fund, Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890