Global Development Resources, Inc.

May 20, 2005 16:30 ET

Global Development Resources, Inc.-Formerly ELI Eco Logic Inc.-Announces Private Placement and Granting of Stock Options

TORONTO, ONTARIO--(CCNMatthews - May 20, 2005) - Global Development Resources, Inc. (TSX VENTURE:GDV) (formerly ELI Eco Logic Inc. (TSX VENTURE:ELI.H)) (the "Company") announces that it is proceeding with a private placement financing of 2,500,000 units at $0.30 per unit for total gross proceeds of $750,000. Each unit will consist of one common share of the Company and one share purchase warrant entitling the holder to acquire one additional common share of the Company at $0.40 for a period of 24 months from the date of issuance.

Five individuals who are at arm's length with the Company will be subscribing for 1,000,000 units for gross proceeds of $300,000. Two insiders, Kent Smith and Global (GMPC) Holdings Inc. will be subscribing for 1,000,000 units and 500,000 units respectively, for gross proceeds of $450,000.

The proceeds of the private placement will be used to provide additional working capital in support of the Company's business plan.

The common shares, warrants and any additional common shares issued pursuant to the exercise of the warrants will be subject to a four (4) month hold period.

A commission of 7% is payable in cash to Lucas Ewart on gross proceeds raised from the private placement with the arm's length subscribers.

The proposed financing and commission payout are subject to regulatory approval.

The Company also announces that under the Company's Stock Option Plan (the "Plan") it granted on May 20, 2005 to Directors and Officers of the Company incentive stock options to purchase an aggregate of 1,300,000 common shares of the Company at the exercise price of $0.30 per share expiring on May 20, 2010. These incentive stock options are subject to TSX Venture Exchange acceptance. The number of Shares reserved for issuance under the Plan is 1,300,000 of which 1,300,000 have been granted under the Plan.

Contact Information

  • Global Development Resources, Inc.
    Mr. Chris Carmichael
    (416) 488-7760