It appears that TEG has been filed on, I'm still digging around...

It appears that TEG has been filed on, I'm still digging around to see what else I can find about this alleged pending action.

So here what I have so far

After some digging it turns out that TEG signed an agreement with MonTerra Ltd on 17 Nov 14.

To pay Monterra a "strategic advisory fee" of $250,000 upfront. $USD
A Success fee of $750,000 on securing the long term production contract $USD
and a 7% fee for all fundraising over $1,000,000
Plus 10% interest on any unpaid amounts.

(Firstly Who signs such a deal? This appears super shady...just saying board what were you guys thinking?)

This "deal" is referenced here

https://www.google.com.au/url?sa=t&...bIl_C-NrL1ZFPVZ5A&sig2=zuRyyr-WHX3A66lYa7E4VA

And also also mentioned in the annual report on page 54 Note 19 Commitments and Contingencies

https://www.google.com.au/url?sa=t&...FHaLhciBA&sig2=jn-1jhHIKhxhn83gTG8LHg&cad=rja

Now it appears that MonTerra is seeking action against TEG in Hong Kong for a number of apparent breaches of agreement by TEG.

The cash value that MonTerra appears to be seeking from TEG is between $1,000,000 and $9,121,350 USD (the amount they claim they are owed biased on their full entitlement under the agreement).

Monterra is apparently also seeking all amounts "potentially payable" be set-aside in escrow pending the results of the action against TEG

If what I'm reading and being told by key contacts this all looks very bad!

I would like to see the board fully inform shareholders as to the nature of the alleged action prior to any vote being made!