Last Close: June 1, 2010 - $0.14
Shares Issued: 63,036,627
CALGARY, June 2 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Corporation") is pleased to announce that it has received a Letter of Acceptance from APEC Logic Investments Pty Limited (http://www.apecgroup.org/) ("APEC") for making a final application for a US$60 million investment loan (the "Loan") from a large private investment trust fund in Europe (the "Trust"). APEC is an authorized agent for the Trust and is an Australian-based international investment company with strategic partners and select investments in Asia and has offices in both Australia and Singapore. The Trust was reported to have loaned US$900 million in 2009 towards developing and advancing various international projects. The Loan will be treated as a zero-based bond that Maple Leaf does not have to pay back the principal and interest for until the 10-year anniversary. The interest rate will be the on-going bond rate in Europe, which is presently between 4.5% and 5.5%.
To facilitate the final application, APEC's principals will be visiting Maple Leaf's China operations and meeting with Raymond Lai, President & CEO of Maple Leaf in late June or early July, 2010. APEC will then be making a final presentation to the Trust regarding Maple Leaf in late July or early August, 2010, at which time a decision on final approval for the Loan will be made by the Trust.
Raymond Lai comments, "We have been working on this major financing for nearly a year now. It is very exciting that MPE has received the Letter of Acceptance from the Trust and APEC as it is certainly a very meaningful step forward for us. If the Loan is approved following APEC visiting our operations and presenting a final report to the Trust, we expect that the first tranche of funding will be available to MPE approximately 90 days from now. With this funding, MPE will be able to rapidly advance its new bio-diesel and waste oil projects as well as to expand its other core operations. Securing this financing would be a major milestone for Maple Leaf".
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 feedstock;
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, (ii) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (ii ) 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: firstname.lastname@example.org