(TSX-V: MPE)
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Last Close: 10-01-2007 $0.98
CALGARY, Oct. 2 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce that it has signed a 1 year sales contract with its Joint Venture parther, Huize Forestry Co. Ltd. of Changzhi, Shanzi ("Huize Changzhi"), to purchase a variety of Maple Leaf's tree seedlings for $18 million RMB (approximately $2.4 million Canadian). Huize Changzhi is a local privately owned company located in Changzhi City, Shanxi Province, which provide forestry products and service to Changzhi City and other areas for Shanxi Province. Maple Leaf entered the Joint Venture agreement with Huize Changzhi in June of this year.
Under the sales contract, Huize Changzhi will purchase approximately 12 million seedlings in 2008. Actual delivery dates will be provided by Maple Leaf at a later date. The 12 million seedlings purchased will include a variety of existing seedlings currently under cultivation within Maple Leaf's nursery facilities. The seedlings are varieties of Colorado Spruce, Chinese Pine, Jack Pine, Scots Pine and Northern China Larch. Maple Leaf is also allowed to grow or purchase seedlings from an outside source if it is necessary, as long as Maple Leaf still provides the guarantee of the quality of all the seedlings. Maple Leaf is also obligated to provide on-site training to Huize Changzhi's staff at least 4 times a year. Huize Changzhi is required to make a cash payment to Maple Leaf prior to the shipment of each delivery of seedlings.
Raymond Lai, President and Chief Executive Officer of Maple Leaf, is very pleased that it is the second sales contract to supply seedlings to a Chinese provincial government. It reinforces Maple Leaf's belief that the door to the huge Chinese Government's forestry sector has finally opened.
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.
For further information regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com.
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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.