Business
Maple Leaf Reforestation Inc. - Yellowhorn tree bio diesel and cooking oil project with Xinjiang Government
Maple Leaf Reforestation Inc. - Yellowhorn tree bio diesel and cooking oil project with Xinjiang Government.
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\n(TSX-V: MPE)\n\n\nShares Issued: 53,461,980\n\n\nLast Close: 10-12-2007 $1.30\n\n\nCALGARY, Oct. 16 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is\nexcited to announce that it has entered into a Memorandum of Understanding\n("M.O.U.") with Jilin Saar County of Xinjiang autonomous region of China\n("Jilin") to establish a Bio Diesel Production Chain (the "project") for\nShiny-Leaved Yellowhorn trees ("Yellowhorn"). The M.O.U. requires the approval\nof Maple Leaf's board of directors to become effective, and can be altered or\nrevoked by either party until the formal agreement is signed. While\nnegotiations continue toward a formal agreement for the project, Maple Leaf\ncurrently has a team in China evaluating the project.\n\n\nUnder the terms of the M.O.U., both sides agree to do the following:\n\nJilin will:\n\n- provide 400,000 mu (or 68,000 acres) of land to Maple Leaf free of\n charge for 70 years to grow the Yellowhorn trees (mu is a Chinese unit\n of area (equal sign) 0.17 of an acre);\n- assist Maple in obtaining all the necessary governmental approvals and\n permits to utilize the land, and will provide the required labour\n force, free of charge, to plant the seedlings;\n- assist Maple Leaf in obtaining 300 mu of land for building a cooking\n oil and bio diesel processing plant in the county, with the cost below\n $5,000RMB per mu (or CDN$3000 per acre; CAN$1 (equal sign) 7.7160\n Chinese Renminbi (yuan) ("RMB") as of October 15, 2007);\n- guarantee Maple Leaf a monopoly to operate the processing plant in the\n county (with the exception of growing the Yellowhorn);\n- allow Maple Leaf to dig enough irrigation wells to water the\n Yellowhorn (the norm is one well per 1,500 mu of land), and Jilin will\n also assist Maple Leaf in installing the necessary infrastructure for\n the plant and farm; and\n- provide Maple Leaf with subsidies and special tax treatment, and\n assist Maple Leaf in applying for subsidies and grants from the\n central government of China with respect to developing bio diesel\n production.\n\nMaple Leaf will:\n\n- develop this project under the guidance and supervision of Jilin and\n according to the laws and regulations of China;\n- provide the necessary capital for developing the tree farm and the\n processing plant with 100,...