Business
Maple Leaf Signs J.V. with Huize Forestry
Maple Leaf Signs J.V. with Huize Forestry.
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\n(TSX-V: MPE)\n\n\nShares Issued: 47,184,227\n\n\nLast Close: 22-06-2007 $0.27\n\n\nCALGARY, June 25 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is\npleased to announce that it has signed a joint venture agreement ("JV\nAgreement") with Huize Forestry Co. Ltd ("Huize Changzhi") of Changzhi, Shanxi\nProvince, People's Republic of China to grow and sell Maple Leaf's tree\nseedlings in Shanxi Province. Huize Changzhi, a local privately owned company\nprovides forestry products and services to Changzhi City and other areas for\nShanxi Province.\n\n\nUnder the JV Agreement, Maple Leaf's wholly owned subsidiary, Inner\nMongolia Maple Leaf Nursery Co. Ltd., will own 52% and Huize Changzhi will own\n48% of the joint venture property (the "Joint Venture"). The Joint Venture\nwill include the incorporation of a company to be named Changzhi City Huize\nMaple Leaf Forestry Ltd. ("Huize Maple Leaf"), which will operate the Joint\nVenture. Maple Leaf will contribute $5,100,000 RMB into the Joint Venture,\nwhich includes 400,000 seedlings a year, a $300,000 RMB one time cash\ninjection and $500,000 RMB worth of technology know how. Huize Changzhi will\ncontribute $4,700,000 RMB, which includes 400 mu of land, $1,000,000 RMB worth\nof technical installations and a $1,000,000 RMB cash injection. The total\ninvestment is $9,800,000 RMB. A board of directors made up of 5 members; 3\nfrom Maple Leaf and 2 from Huize Changzhi will govern Huize Maple Leaf. The\nterm of the JV Agreement is 10 years and can be extended upon both parties'\napproval.\n\n\nFurther, under the JV Agreement, Huize Changzhi will invite Maple Leaf to\nparticipate in all Huize Changzhi existing and upcoming contracts with\nChangzhi City. Each contract's percentile share between both parties will be\nnegotiated separately. Currently, Huize Changzhi is working on four major\nprojects for Changzhi City, namely; a wasteland revitalization project, a\nreinstallation of farmland to forest project, a park and recreation areas\nmanagement project and a newly developed areas reforestation project. The\ntotal value of these 4 projects is about $98,500,000 RMB (approximately\n$15,000,000 CAD). Maple Leaf will be involved in all these projects earning\ncash flow from each one.\n\n\nMr. Clarke, Chairman & CEO of Maple Lea...