(TSX-V: MPE) Last Close: February 2, 2009 - $0.105 Shares Issued: 56,511,127
CALGARY, Feb. 2 /CNW/ -
Organic Fertilizer Plant
Maple Leaf Reforestation Inc. (TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to announce that it has finalized the registration of its foreign subsidiary, Hunan Changde Maple Leaf Fertilizer Co., Ltd., which will be responsible for operating the Company's organic fertilizer plant located in Jin City, Wuhan City, China (the "Plant"). The Plant occupies a 21 acre (130 mu) building. The Plant consists of four sections, a fermenting workshop, a granulating workshop, a laboratory and a comparative testing base. The initial production capacity of the Plant will be 20,000 metric tonnes per year and the Plant has the potential to be upgraded to 100,000 metric tonnes per year. An opening ceremony was held for the Plant which was attended by Mr. Raymond Lai, President & CEO of Maple Leaf, by Mr. Kang Shaozhong, the Vice-Mayor and representative of Jin City and by various other Government officials from the Hunan Province. Mr. Shaozhong and the various environmental and agricultural departments in the area have been very supportive of the Plant. The Plant is scheduled to commence production in March 2009.
The fertilizer to be produced at the Plant is known as Fenghua organic fertilizer ("Fenghua"). Fenghua is a new type of environmentally friendly fertilizer which uses pig manure, chaff and sewage sludge as raw materials. It can make soil loose, prevent soil from consolidating, improve the nutrition quality of soil, increase soil fertility and increase crop yield.
Mr. Raymond Lai, President & CEO of Maple Leaf commented: "Maple Leaf is excited to be commencing its diversification into this aspect of the Chinese agricultural industry. Maple Leaf hopes that the Plant will bring great environmental benefits to the area and its people."
Alfalfa Shipments
Maple Leaf's foreign subsidiary, Xinjiang Maple Leaf Forestry Sci-Tech Co., recently shipped out 374.32 metric tonnes of alfalfa at an average price of 2,250 Rmb ($397 Cdn) per tonne, for total revenue of 755,347 Rmb ($133,347 Cdn). The alfalfa was shipped in varying amounts to Hebei Kai Te Group Co., Ltd., Sichuan New Hope Group Co., Ltd. and Guangdong Wen's Foodstuffs Group Co., Ltd.
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 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.
More specifically, the Company has made the forward-looking statement in this news release that the Plant is expected to commence production in March 2009. This is only the hope and expectation of the Company. Numerous risks exist which could delay the commencement of production at the Plant. These risks include mechanical difficulties with the machinery at the Plant, issues surrounding personnel needed to operate the machinery at the plant and unforeseen start-up costs arising that are beyond the present financial means of the Company.
Also, the Company has made the forward-looking statement in this news release that the Plant has the potential to be upgraded to a production capacity of 100,000 metric tonnes. Such an upgrade would require a substantial capital contribution by the Company. Although it is the hope of the Company that the Plant will reach this production capacity, its ability to fund such an upgrade is dependent on its ability to raise capital. Alternatively, the Company may fund such an upgrade through profits incurred as a result of fertilizer sales, however at present, the Company does not have any such sales secured. Furthermore, reaching such an elevated production capacity requires smooth functioning of machinery within the Plant and obtaining the services of additional personnel to operate the machinery at this greater functioning capacity. There are numerous uncertainties associated with such an increase in production capacity at the Plant including, but not limited to, the Company's access to financial resources and its ability to secure sales contracts. As such, a move to upgrading the Plant to a greater production capacity will be dependent on the Company's success with selling fertilizer at lower production levels.