GMD RESOURCE CORP.
Suite 1650 - 999 West Hastings Street, Vancouver British Columbia V6C 2W2
Telephone: (604) 662-3350 Facsimile: (604) 669-1605Toll Free: 1-800-808-3350 E-mail: gmdgeo@portal.ca
CDNX Symbol - "GMD"
U.S. 12g3 Exemption #82-4071
News Release No. 225
April 28, 2000
NEWS RELEASE
GMD Resource Corp. (the "Company") reports that the first installment amount of $200,000.00 due to the Company pursuant to an Agreement dated February 3, 1999 (as amended January 10, 2000) between the Company and Farrell Financial Ltd., Variety Investments Ltd. (two private companies owned by Don Farrell), and Don Farrell the former president of the Company (collectively "Farrell") with regard to the repayment of the non arm?s length loan by the Company to LMX Resources Ltd. ("LMX") has been paid.
The advances to LMX, a company listed on the CDNX with four former officers and directors in common with the Company, were used to fund exploration and development expenditures on natural resource properties then held by LMX. The advances were unauthorized, not approved by the Company?s Board of Directors and were in violation of the Vancouver Stock Exchange (now CDNX) regulations and the Company Act. The February 3, 1999 agreement, as amended, which has been accepted by the regulatory authorities provides for repayment by Farrell of the principal amount plus interest for a total of $2,250,625.00 as follows;
Amount of Installment
on Account of Principal Amount
Due Date (last day of applicable calendar month following closing)
Month End
Due Date
$200,000
Paid
-
$300,000
Month 14
July 31, 2000
$250,000
Month 20
January 31, 2001
$250,000
Month 26
July 31, 2001
$250,000
Month 32
January 31, 2002
$250,000
Month 38
July 31, 2002
Balance outstanding including interest
Month 44
January 31, 2003
LMX issued 10,000,000 treasury shares to Farrell regarding the LMX loan. The Company will receive 90% of the proceeds of sale of the LMX shares. The LMX shares issued are held by an escrow agent appointed by GMD. If Farrell defaults GMD can take delivery of the shares and dispose of them subject to a right of first refusal to LMX?s management.
For further information please contact Investor Relations at (604) 669-6619 or 1-800-808-3350.
GMD RESOURCE CORP.
"Rodney N. Duncan"
Rodney N. Duncan
President
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