(TSX-V: MPE)
Shares Issued: 53,806,980
Last Close: 10-27-2007 $0.96
CALGARY, Nov. 27 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce the closing of a non-brokered private placement raising $2,290,000.00 CAD, subject to final approval by the TSX Venture Exchange. As previously announced on October 30, 2007 Maple Leaf's Board of Directors (the "Board") approved a placement of up to $3 million of units. Pursuant to the private placement, Maple Leaf will issue 1,526,667 common shares at $1.50 per share, including 763,333 warrants exercisable at $2.00 for a period of 2 years. The shares will be subject to a hold period of four months from October 30, 2007.
Closing of the private placement has put Maple Leaf in a position to begin moving forward with the Xinjiang Bio Diesel Project (the "Project"). Maple Leaf announced the signing of a Memorandum of Understanding ("MOU") in relation to the Project on October 16, 2007. Also previously announced on October 23, 2007 was the approval of the MOU by Maple Leaf's Board and an initial Project advancement of $370,000.00 CAD. Maple Leaf will be advancing $800,000.00 CAD of the funds raised from this private placement to satisfy its investment obligations for the first operational year of the Project. Maple Leaf President and Chief Executive Officer, Raymond Lai is very pleased with how the details of the Project are unfolding and plans to go to China to finalize and execute the contract with the Chinese Government Officials on December 21, 2007.
The Chinese government has recognized the serious shortage of diesel oil and is hoping that Maple Leaf will be able to start the Project as soon as possible. The Project is a complete production chain for Bio Diesel production in a very large scale. As previously announced, the Project will include the development of a 100,000 tonne processing plant. The Project is expected to start generating revenue after 2 years and, upon execution, will operate for 70 years.
Maple Leaf's primary mission is to provide top quality, value added nursery seedlings and modern Canadian tree growing technology to assist China in solving its desertification problems. Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation in its 110,000 square foot greenhouse.
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 therefrom. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.