Business
Maple Leaf Signs MOU for Bio-Fuel Joint Ventures
Maple Leaf Signs MOU for Bio-Fuel Joint Ventures
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Mar. 8, 2010 (Canada NewsWire Group) -- /CNW/ -- Maple Leaf Reforestation Inc. (\"Maple Leaf\" or the \"Company\") is pleased to announce that it has signed a Memorandum of Understanding with Biodis Engineering Ireland Limited (the \"MOU\"), which is a partially owned subsidiary of Biodis Engineering Swiss, S.A. (\"Biodis\"). This MOU further pursues the relationship Maple Leaf has with Biodis for the securing of feedstock oils for the production of bio-diesel. Pursuant to the MOU, Maple Leaf and Biodis will undertake to enter three separate joint venture agreements regarding the following projects (the \"Definitive Agreements\"):1. Installation of one Biodis made Bio-Diesel Plant with a minimumcapacity of 7,000 tons per annum in Zhanjiang City, China(\"JV No. 1\");2. Construction of a facility for the collection and crushing offeedstock plants and the gathering of Recycled Vegetable Oil with acapacity of 10,000 tons per month in Zhanjiang City, China(\"JV No. 2\"); and3. Acquisition of enough land in different regions of China to grow onetype or several types of feedstock plants in order to supply 100,000to 150,000 tons of feedstock oil per year (\"JV No.3\").The MOU has been filed on www.sedar.com as a \"Material Document\".JV No. 1The following terms will apply to JV No. 1:(a) A joint venture company will be established in China to operateJV No. 1 (\"JV Company No. 1\"). Maple Leaf and Biodis will each own50% of JV Company No. 1;(b) Maple Leaf will loan $250,000 USD to JV Company No. 1 (the \"MapleLeaf Loan\"). The date that the Maple Leaf Loan will be provided toJV Company No. 1 will be dependent on its ability to raise the fundsthrough debt or equity;(c) Biodis will loan all necessary financing for JV No. 1 toJV Company No. 1, excluding the amount of the Maple Leaf Loan (the\"Biodis Loan\");(d) Maple Leaf will secure an appropriate site location and will acquireall necessary permitting for JV No. 1. The cost of acquiring such alocation and obtaining the permitting will be the responsibility ofJV Company No. 1; and(e) Maple Leaf and Biodis will share 40% of the net profit generated fromJV No. 1 immediately upon realizing such profits, and 60% of the netprofit will be used to pay back the Maple Leaf Loan and the BiodisLoan (collectively, the \"JV No. 1 Loans\"), in proportional amounts tothe total of the JV N...