AAD Added Capital

Investors will be aware that the severe and adverse economic conditions have had a dramatic impact on exploration and mining projects on a global basis. These conditions are also seriously affecting the diamond industry, including current and planned diamond mining operations. In light of these events, Archangel Diamond Corporation ("Archangel" or the "Corporation") (TSX VENTURE: AAD) has considered its position relating to its proposed acquisition of a 49.99 per cent equity interest in OAO "Arkhangelskoe Geologodobychnoe Predpriyatie" ("AGD") pursuant to the Share Purchase Agreement ("SPA") between OAO "LUKOIL", the Corporation and De Beers S.A. dated April 15 2008, as amended and other transaction agreements signed at that time, and all as described in the Corporation's news release dated April 16, 2008.

Together with its wholly owned subsidiary, Archangel has today notified OAO "LUKOIL" ("LUKOIL") of a Termination Event.

Under the terms of the SPA, a Termination Event includes a Material Adverse Change. Such term means, in the context of a Termination Event, a material and adverse change in or effect on the Verkhotina Business or assets relating to the Verkhotina Business or operations or condition (financial or otherwise) of AGD. Pursuant to the SPA, if such Termination Event is continuing thirty days after notification thereof, then Archangel and/or its wholly owned subsidiary may terminate the SPA within the period of five business days after such 30 day period. If the SPA is so terminated, this will result in the other transaction agreements being terminated.

In addition, two conditions precedent stipulated in the SPA, namely, approval under the Russian Federation law on foreign investment in strategic assets and approval under the Russian Federation competition law, are still outstanding and have not yet been satisfied. If the outstanding conditions precedent are not satisfied by December 31, 2008, under the SPA either Archangel or LUKOIL may thereafter terminate the SPA. This will result in the other transaction agreements being terminated. As regards the former condition precedent, discussions are currently ongoing between Archangel and the Russian Federal Anti-Monopoly Service ("FAS") regarding the draft ancillary agreement and the application for consent made in August 2008 by its wholly owned subsidiary. There can be no assurance that agreement on the final terms of an ancillary agreement will be reached in any event and there can be no assurance that one party would not unilaterally decide at any time to treat such discussions as at an end. If this occurs, the effect would be that consent for the transaction would be refused.

In light of all of the above, investors in common shares of Archangel are advised to exercise caution.

CAUTIONARY NOTE TO SHAREHOLDERS CONCERNING FORWARD LOOKING STATEMENTS AND FINANCIAL PROJECTIONS - This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the outcome of future negotiations, completion of the Transaction, execution of definitive agreements, exercise of future call rights, success of financing activities, identification or upgrade of mineral resources, requirements for additional capital, government regulation, results of future diamond exploration, results of diamond marketing, changes in legal requirements, changes in the political environment, environmental liabilities and title disputes. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual outcomes, results, level of activity, performance or achievements of Archangel Diamond Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks described in the above news release; those risks set out in Archangel's disclosure documents and its annual, interim management discussion and analysis and annual reports. Although Archangel has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Archangel does not undertake to update any forward-looking statements or financial projections, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts: Archangel Diamond Corporation - Media Enquiries Ms. Jocelyn Fraser (604) 731-6164 Email: jocelyn.fraser@archangeldiamond.com Archangel Diamond Corporation Mr. Steven Thomas Chief Financial Officer (416) 423-1600 Email: steve.thomas@ca.debeersgroup.com

Added Capital Inc. (TSXV:AAD)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Added Capital Inc. (TSXV:AAD)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024