Last Close: April 20, 2009 - $0.11 Shares Issued: 56,511,127
CALGARY, May 14 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Company") is pleased to announce that it has agreed to partner with Hanshou County Jinmandi Agriculture Development & Plantation Center ("Jinmandi"), which is owned by Guangdong Jingsheng Investment Co., Ltd., to construct an eco-agricultural conglomerate of facilities in Hanshou County (the "Facilities"). Jinmandi will invest up to $30 million Cdn (165 million Rmb) to build a pig farm, a fertilizer plant and a red potato plantation and processing plant. Construction and operation of the Facilities will be the responsibility of Jinmandi and Maple Leaf will provide marketing and financial management support, both during the construction and operational phases. Jinmandi will be solely responsible for all financial expenditures and liable for all financial risks and liabilities relating to the construction and operation of the Facilities.
The first phase of construction of the Facilities is to build the pig farm (the "Farm"), and it is anticipated that ground will be broken on this project in May 2009. The Farm will be 10,000 square meters in size and will have a 900 meter paved road leading to the entrance. Jinmandi will invest approximately $2.1 million Cdn (11.55 million Rmb) to build the Farm and 8 to 10 acres (50-60 mu) of land will be contributed by Maple Leaf to Jinmandi for the location of the Farm (the "Facility Lands"). It is anticipated that the Farm will house up to 10,000 pigs at any one time, and current market prices indicate that the pigs will be sold for net profits of approximately $275 Cdn (1,500 Rmb) per pig. Jinmandi anticipates that the Farm will be profitable by 2011.
Jinmandi and Maple Leaf will own 90% and 10% of the Farm respectively, and profits will be shared between the parties according to this ownership ratio. The ownership ratio for the fertilizer plant and red potato plant will be negotiated separately and announced at a later time.
Maple Leaf will also be independently using some of the Facility Lands to grow 20,000 date trees and some watermelon patches. All revenue from these sources will be Maple Leaf's. Dates are presently a very popular consumer product in China. Based on current market prices for dates at $1.85 Cdn (10 Rmb) a kilogram and 10 kilograms of date production per tree upon maturity in 3 to 5 years, it is anticipated that approximately $365,000 Cdn (2 million Rmb) in revenue per year will be derived from this product.
Raymond Lai, President and Chief Executive Officer of Maple Leaf comments, "The Cooperation Agreement with Jinmandi is a positive step forward for Maple Leaf in terms of aligning itself with major players in the Chinese Agricultural Industry and it provides yet another revenue stream for the Company, and does so without Maple Leaf having to expend any capital. We hope that this is just the beginning of our relationship with Jinmandi as the synergies between its business plans and Maple Leaf's operations are very evident."
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating four environmental related projects in China:
1. a large-scale forest nursery in Inner Mongolia which is focused on growing value-added tree seedlings and alfalfa feedstock alongside landscaping and nursery products; 2. 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; 3. an organic fertilizer plant in the Hunan Province which will produce environmentally friendly bio-organic fertilizer; and 4. 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 Maple Leaf 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 has made various general revenue projections in this news release. These projections are speculative and such revenues are not guaranteed to be realized by the Company. In addition to the fact that these revenues may never be received by the Company, they could also be received but in varying amounts. The revenues will be based on uncertain future factors such as the market prices of the products being sold and buyers being found to purchase such products.
Maple Leaf has stated that it is partnering with Jinmandi to construct three facilities: a pig farm, a fertilizer plant and a red potato plantation and processing plant. To date, only the terms relating to the construction of the pig farm have been agreed upon by the parties. The Company does not guarantee that it will be able to come to agreeable terms with Jinmandi to proceed with the construction of the fertilizer and potato plants.
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.