Enirgi Group Corp

June 25, 2013 09:08 ET

Enirgi Group Announces Intention to Sell Andover Position

TORONTO, ONTARIO--(Marketwired - June 25, 2013) -


Enirgi Group Corporation ("Enirgi Group") announced today its intention to sell up to 4,097,500 common shares (the "Andover Shares") of Andover. The sale of Andover Shares is expected to begin on or after Friday, June 28, 2013.

Enirgi will file an amendment to its early warning report dated March 27, 2013 ("EWR") in connection with its ownership of securities of Andover Mining Corp. ("Andover").

As a result of the non-payment of a US$2.5 million principal amount non-convertible note dated September 23, 2011 (the "September Note") of Andover on its maturity, Enirgi Group commenced legal proceedings against Andover in the Superior Court of British Columbia to enforce repayment of the full principal amount of the Notes (as defined below) on June 4, 2013.

In addition, the EWR has been amended to reflect a change in the conversion rate under a US$1.5 million principal amount convertible note of Andover dated August 31, 2012 (the "August Note"). As a result of the closing, on May 31, 2013 of a non-brokered private placement of Andover's securities, Enirgi Group is entitled to demand a redemption of all or a portion of the August Note in Andover common shares at a conversion price equal to the current market price of Andover common shares, rather than the initial CAD$0.235 conversion price.

Enirgi Group is also the holder of a US$2.5 million principal amount convertible note dated April 30, 2012 (the "April Note") of Andover (the August Note, the September Note and the April Note are collectively referred to herein as the "Notes"). The April Note can be converted into common shares of Andover at CAD$0.32 per share at the discretion of the holder thereof up to the date of maturity.

Enirgi Group reserves the right to change the plans described above at any time including by acquiring or disposing of Andover common shares or exercising the conversion rights under the August Note and the April Note.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any Andover securities.

For further information or to obtain a copy of the amended Early Warning Report filed by Enirgi Group, please contact Jessica Helm at (416) 365-2783.

Enirgi Group Corporation is a private Canadian company. For additional information, please visit our website at www.enirgi.com.

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