(TSX-V: MPE)
Shares Issued: 47,184,227
Last Close: 22-06-2007 $0.27
CALGARY, June 25 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce that it has signed a joint venture agreement ("JV Agreement") with Huize Forestry Co. Ltd ("Huize Changzhi") of Changzhi, Shanxi Province, People's Republic of China to grow and sell Maple Leaf's tree seedlings in Shanxi Province. Huize Changzhi, a local privately owned company provides forestry products and services to Changzhi City and other areas for Shanxi Province.
Under the JV Agreement, Maple Leaf's wholly owned subsidiary, Inner Mongolia Maple Leaf Nursery Co. Ltd., will own 52% and Huize Changzhi will own 48% of the joint venture property (the "Joint Venture"). The Joint Venture will include the incorporation of a company to be named Changzhi City Huize Maple Leaf Forestry Ltd. ("Huize Maple Leaf"), which will operate the Joint Venture. Maple Leaf will contribute $5,100,000 RMB into the Joint Venture, which includes 400,000 seedlings a year, a $300,000 RMB one time cash injection and $500,000 RMB worth of technology know how. Huize Changzhi will contribute $4,700,000 RMB, which includes 400 mu of land, $1,000,000 RMB worth of technical installations and a $1,000,000 RMB cash injection. The total investment is $9,800,000 RMB. A board of directors made up of 5 members; 3 from Maple Leaf and 2 from Huize Changzhi will govern Huize Maple Leaf. The term of the JV Agreement is 10 years and can be extended upon both parties' approval.
Further, under the JV Agreement, Huize Changzhi will invite Maple Leaf to participate in all Huize Changzhi existing and upcoming contracts with Changzhi City. Each contract's percentile share between both parties will be negotiated separately. Currently, Huize Changzhi is working on four major projects for Changzhi City, namely; a wasteland revitalization project, a reinstallation of farmland to forest project, a park and recreation areas management project and a newly developed areas reforestation project. The total value of these 4 projects is about $98,500,000 RMB (approximately $15,000,000 CAD). Maple Leaf will be involved in all these projects earning cash flow from each one.
Mr. Clarke, Chairman & CEO of Maple Leaf, is pleased that this JV Agreement has opened the door for Maple Leaf to the "Restoration of Green Environment" programs spearheaded by China's central government, not to mention the significant amount of revenue that this JV Agreement will bring to Maple Leaf.
Maple Leaf's primary mission is to provide top quality, value added nursery seedlings and services for reforestation and landscaping projects in China through a 100% Wholly Owned Foreign Enterprise registered company. Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation in our 110,000 square foot greenhouse.
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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 there from. 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.