Global Development Resources, Inc.
TSX VENTURE : GDV.U

December 01, 2008 16:27 ET

Global Development Resources, Inc. to Retain Ownership in its Subsidiary

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2008) - Global Development Resources, Inc. (TSX VENTURE:GDV.U) ("GDR" or the "Company") announces today that the purchasing group has withdrawn their offer for the purchase of GDR's wholly owned subsidiary Global Development Resources, Inc. (USA) ("GDR USA").

The Company's CEO and member of the purchasing group Kent Smith said, "Market conditions in the US real estate industry and the economy in general has made it impossible to proceed under the terms of the offer."

The Company plans to raise US$1,150,000 for working capital for the Company in the form of a 3-year convertible promissory note. The note will be convertible at $0.15 per common share and will have an interest rate of 10%. The note will be secured by a second mortgage on the property owned by the Company called Big Creek Lodge, located outside of Asheville, North Carolina.

Restatement of Financial Statements and Management Discussion and Analysis

The Company prepared its 2008 second quarter financial statements on the basis that its asset GDR USA was a discontinued operation. The Company will restate its 2008 second quarter financial statements to reflect its asset GDR USA as a continuing operation and will file these statements on SEDAR by Friday, December 5, 2008. Total assets, liabilities and net income (loss) for the period will not been affected. The Company detailed its discontinued operations on Note 5 of its initial 2008 second quarter financial statements and the amended balance sheet and income statements classification were adjusted by those amounts. Additional note disclosure on the Company's assets will be added to the amended 2008 second quarter financial statements.

Corporate Updates

According to the Company's CEO, Kent Smith, the Company will continue to focus its attention on the two development undertakings currently underway. When asked about the impact of current market conditions on those developments, Mr. Smith points out that certain "more unique" markets have been significantly less impacted by the state of the United States real estate market and can actually represent excellent buying opportunities for real estate purchasers. According to Mr. Smith, the two developments currently being developed are in just such locations, Asheville, North Carolina and Chama, New Mexico. Mr. Smith also points out that in addition to those developments being located in unique markets within the United States, the properties themselves are uniquely different from any other offerings within those locals. For additional information on the referenced developments please visit their websites at:

The Thoms Estate, Asheville, North Carolina (www.thethomsestate.com)

Canyon Ridge, Chama, New Mexico (www.discovercanyonridge.com)

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For more information on the company or its offerings,
    please contact Mr. Kent Smith, CEO
    Global Development Resources, Inc.
    (828) 891-6400