Last Close: November 18, 2009 - $0.11
Shares Issued: 61,836,627
CALGARY, Nov. 18 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Company") is pleased to announce that it has signed an agreement with the town of Lingquan, Hunan in China to supply organic fertilizer to the town-operated starch processing project.
Under the agreement:
- The town of Lingquan, Hunan ("Lingquan") is to grow 10,000 mu
(1,650 acres) of sweet potatoes starting in early spring 2010. The
sweet potatoes will be used for processing starch.
- Maple Leaf will be responsible for providing 250 kgs of fertilizer
per mu or 2,500 tons in total for the whole project.
- The fertilizer will be purchased by Lingquan for approximately
$100 Cdn (600 Rmb) per ton, which is a discounted price. The total
value of the agreement is approximately $234,000 Cdn
(1.5 million Rmb). Maple Leaf has provided the fertilizer to Lingquan
at a discounted purchase price because it believes that forming a
relationship with Lingquan is priority number one. If Lingquan is
satisfied with the quality of the fertilizer Maple Leaf hopes that
the relationship will grow and a higher price will be obtained for
any future fertilizer supply agreements that may be entered.
- Maple Leaf will receive approximately $4,700 Cdn (30,000 Rmb) as a
deposit for this order.
- Maple Leaf will begin production of the organic fertilizer for
Lingquan in December, 2009 with delivery of the entire order to occur
in early spring 2010.
- In addition, Lingquan will be renting some space in Maple Leaf's
production facilities for the purpose of processing the starch from
its sweet potatoes. The rental arrangement will last for a duration
of two months and Lingquan will pay Maple Leaf a total rental fee of
approximately $3,120 Cdn (20,000 Rmb).
- The residue from the starch production of approximately 17,500 tons
will be given to Maple Leaf at no charge. Maple Leaf is able to use
the residue to produce additional organic fertilizer.
This agreement comes shortly after the Company's organic fertilizer plant was awarded a grant of approximately $78,000 Cdn (500,000 Rmb) from the Hunan Provincial Government in recognition of Maple Leaf's efforts in implementing effective environmental improvement programs (see news release dated November 9th, 2009).
Raymond Lai, President and CEO of Maple Leaf comments, "We are very pleased to see the organic fertilizer operations expand. It is a big step for us towards developing a solid relationship with local government. To be able to enter a supply agreement with the local government immediately after winning the grant really shows the government's willingness to work with our Company".
Maple Leaf would also like to announce that the joint venture agreement signed with Hanshou County Jinmandi Agriculture Development & Plantation Center ("Jinmandi") in May 2009 (see news release dated May 14th, 2009) has been cancelled. Jinmandi has encountered difficulties in obtaining all the necessary permits and approvals from the local governments despite the assistance that Maple Leaf offered. Given these difficulties, Maple Leaf believes that its resources will be better utilized developing its alfalfa and organic fertilizer projects which offer near term revenue opportunities at favorable margins.
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 (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: 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