Maple Leaf signs 1.5 million Rmb organic fertilizer supply agreement
(TSX-V: MPE) Last Close: November 18, 2009 - $0.11 Shares Issued: 61,836,627
Under the agreement: - The town of Lingquan, Hunan ("Lingquan") is to grow 10,000 mu (1,650 acres) of sweet potatoes starting in early spring 2010. The sweet potatoes will be used for processing starch. - Maple Leaf will be responsible for providing 250 kgs of fertilizer per mu or 2,500 tons in total for the whole project. - The fertilizer will be purchased by Lingquan for approximately $100 Cdn (600 Rmb) per ton, which is a discounted price. The total value of the agreement is approximately $234,000 Cdn (1.5 million Rmb). Maple Leaf has provided the fertilizer to Lingquan at a discounted purchase price because it believes that forming a relationship with Lingquan is priority number one. If Lingquan is satisfied with the quality of the fertilizer Maple Leaf hopes that the relationship will grow and a higher price will be obtained for any future fertilizer supply agreements that may be entered. - Maple Leaf will receive approximately $4,700 Cdn (30,000 Rmb) as a deposit for this order. - Maple Leaf will begin production of the organic fertilizer for Lingquan in December, 2009 with delivery of the entire order to occur in early spring 2010. - In addition, Lingquan will be renting some space in Maple Leaf's production facilities for the purpose of processing the starch from its sweet potatoes. The rental arrangement will last for a duration of two months and Lingquan will pay Maple Leaf a total rental fee of approximately $3,120 Cdn (20,000 Rmb). - The residue from the starch production of approximately 17,500 tons will be given to Maple Leaf at no charge. Maple Leaf is able to use the residue to produce additional organic fertilizer.
This agreement comes shortly after the Company's organic fertilizer plant was awarded a grant of approximately
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1. a large-scale forest nursery in Inner Mongolia which is focused on growing value-added tree seedlings and nursery products; 2. an alfalfa feedstock operation that produced 10,000 tons in 2009 with great expansion potential and opportunity to build an alfalfa crop cake processing plant; 3. 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; 4. an organic fertilizer plant in the Hunan Province which will produce environmentally friendly bio-organic fertilizer; and 5. 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 the Company 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
For further information: Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, E-mail: [email protected]
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