Business
Maple Leaf to Build Organic Fertilizer Plant
(TSX-V: MPE) Last Close: December 5, 2008 - $0.145 Shares Issued: 56,511,127
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\n(TSX-V: MPE)\nLast Close: December 5, 2008 - $0.145\nShares Issued: 56,511,127\n\n\nCALGARY, Dec. 8 /CNW/ - Maple Leaf Reforestation Inc (TSX-V-MPE) (the\n"Company" or "Maple Leaf") is pleased to announce that it has signed a Letter\nof Intent (LOI) with the China Eco Program Development & Advisory Corp\n("CEPDA"), a China based environmental project development company, for the\nconstruction of an organic fertilizer plant. Under the agreement, which\nincludes a special "Build, Operate and Transfer" ("BOT") term, CEPDA will\nensure and facilitate all possible government tax incentives; land use\namendments and agreements; all licensing applications, approvals and permits;\nfeasibility studies, engineering reviews and supply contracts; forward\npurchase agreements and facility construction.\n\n\nMaple Leaf will provide the capital to build the fertilizer plant and\nwill have sole ownership of it. Under the special BOT arrangement, CEPDA will\nbe contracted to provide technical support, operations and professional\nmanagement services for the plant during the first year of operations. Mr.\nCasey Chan, VP of Corporate Development for Maple Leaf is spearheading this\nexciting new initiative and will finalize the formal agreement with CEPDA and\nlocal authorities in due course.\n\n\nThe company is working closely with local equipment manufacturers in the\ndesign and installation of production machinery, with a view to commencing\nconstruction in Febuary, 2009. The plant will be constructed in phases using a\nscaleable, modularly expandable model. The plant will initially have a\nproduction capacity of 30,000 metric tons, and the Company hopes to produce\nbetween 10,000-20,000 metric tons during each of the first two years of\noperation, primarily producing bio-organic fertilizers.\n\n\nMaple Leaf's capital investment for the first two years of operation is\nprojected at $500,000 Cdn ($2.5 million Rmb). With a current average selling\nprice for bio-organic fertilizer of $240 Cdn ($1,200 Rmb) a ton, the total\nrevenue generated during each of the first two years of operation could be as\nhigh as $5.5 million Cdn ($27 million Rmb). Upon successful completion of the\ninitial two year phase, the modular plant will steadily be expanded, with\nplans of rapidly reaching a producti...