Last Close: February 26, 2010 - $0.165
Shares Issued: 62,186,627
CALGARY, March 1 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Company") is pleased to announce that it has signed an Exclusive Purchase and Supply Agreement for feedstock oil (the "Supply Agreement") with Biodis Engineering Ireland Limited, which is a partially owned subsidiary of Biodis Engineering Swiss, S.A. ("Biodis").
The Supply Agreement (which has been filed on www.sedar.com as a "Material Contract") is for a three year term and includes the following terms and conditions:
- Maple Leaf shall be the exclusive Chinese supplier of feedstock oil
- To maintain its exclusive Chinese supplier status Maple Leaf shall
supply Biodis with at least 10,000 tons of feedstock oil in year one,
15,000 tons in year two and 20,000 tons in year three;
- Biodis shall pay to Maple Leaf a 5% management fee on the total value
of all feedstock oil that is purchased by Biodis from Chinese
vendors. The management fee shall be paid on a per shipment basis;
- All costs associated with shipping feedstock oil from China to
Biodis' various plants and facilities will be incorporated into the
overall cost of the feedstock oil.
To date, Maple Leaf has located four suitable sources of vegetable feedstock oil in China and is currently negotiating the supply contracts with the various vendors.
Biodis owns patented processes for continuous stream biodiesel production, manufactures equipment that conforms to its patents, operates biodiesel production plants in international locations and has a robust research and development effort for the development of algae as the next generation of feedstock.
Biodis also owns or leases agricultural lands that are suitable for the growing of crops that could efficiently provide non-food chain feedstock for its biodiesel plants while the development of algae production processes and equipment is brought to commercial production status.
Biodis decided to expand its international footprint into the Asian (China and India) markets and made a corporate decision to seek joint ventures with local groups in those markets involved in integrated portions of the value chain required for biodiesel production in those markets.
More information about Biodis can be located at http://www.biodis-swiss.com/empresaen.htm.
Raymond Lai, President & CEO of Maple Leaf comments, "We are very excited about our new relationship with an international bio-fuel producer. Since our discussions with Biodis began in late December our Chinese personnel have been diligently reviewing available vendor relationships so as to locate the most appropriate feedstock oil source for Biodis' purposes and secure the most beneficial price point for Biodis. We are hopeful that we will enter the first formal vendor agreement for feedstock oil in the near future. We are also looking forward to participating in any other opportunities in the Chinese bio-fuel industry that may develop as a result of our new relationship with Biodis."
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating five environmental related projects in China:
1. a large-scale forest nursery in Inner Mongolia which is focused on
growing value-added tree seedlings and nursery products;
2. an alfalfa feedstock operation that produced 10,000 tons in 2009 with
great expansion potential and opportunity to build an alfalfa crop
cake processing plant;
3. a multi-faceted Xinjiang Yellowhorn tree project which will provide
for the manufacture of bio- diesel fuel and cooking oil and
complement the fabrication of the ever demanding nutritious alfalfa
4. an organic fertilizer plant in the Hunan Province which will produce
environmentally friendly bio- organic fertilizer; and
5. a Flexi-Pipe distribution network to serve the oil and gas industry
and other renewable energy industries.
Maple Leaf is a wholly-owned foreign enterprise which allows the Company to control 100% of the direction and operations of the company in China while permitting the cash generated from operations in China to flow back to Canada.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Certain statements in this news release including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (i ) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by Maple Leaf. Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; other development trends within the China's seedling industry; business strategy; expansion and growth of Maple Leaf's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect Maple Leaf's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; government and regulatory developments; seedling product supply and demand; competition; and Maple Leaf's ability to attract and retain qualified personnel. Maple Leaf's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits Maple Leaf will derive there from.
Maple Leaf maintains a forward-looking statement database which is reviewed by management on a regular basis to ensure that no material change has occurred with respect to such forecasts. The Company will publicly disclose such material changes to its forward-looking statements as soon as they are known to management.
SOURCE MAPLE LEAF REFORESTATION INC.
For further information: For further information: regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, E-mail: email@example.com