My Goodness - this just posted on MDA fundingFUNDING FACILITY...

My Goodness - this just posted on MDA funding

FUNDING FACILITY UPDATE
The Board wishes to update Shareholders on the status of the A $25,000,000 facility with JC Long Term Value Fund (JCLTF) announced to market on 23rd May 2011 which was to be used to meet the companies funding requirements for its proposed South Texas shallow well program.
On Tuesday, 5th July 2011 the company received legal advice (over which the company expressly does not waive legal professional privilege) that recent conduct of JCLTF and its parent company AGS Capital Group LLC (AGS) in relation to the Funding Facility was conduct contrary to the Corporations Act 2001 which was damaging to the interests of the company and its Shareholders.
On Friday, 8th July 2011 The Board instructed the company?s solicitors to write to JCLTF and AGS advising them that due to their conduct the Funding Facility was at an end and that the company would be commencing legal proceedings to protect its position.
To preserve the status quo until the Commencement of the Proceedings the company sought urgent undertakings (by 4pm Tuesday, 12th July 2011) from JCLTF and AGS that shares in the company held by them which were issued pursuant to the terms of the Funding Facility would not be traded, transferred, sold, assigned, mortgaged or otherwise encumbered.
In the event that the undertakings are not provided by 4pm Tuesday, 12th July the company will commence urgent Legal Proceedings to protect its position.
In the interim in light of the company?s view that the Funding Facility is at an end the company is immediately evaluating options to secure replacement funding to meet its funding requirements going forward.
Yours sincerely
A R HAMILTON
Chairman