Green House UpdateMaple Leaf Reforestation Inc. - Nursery production and Developments in Inner Mongolia, China
CALGARY, July 28 /CNW/ - Raymond Lai, President and CEO of Maple LeafReforestation Inc. (TSX-V: MPE) ("Maple Leaf" or the "Company") is pleased toreport the following developments at the Company's facilities in InnerMongolia.Nursery, Inner Mongolia-----------------------Current inventory of the Inner Mongolia nursery and greenhouse facility(the "Nursery") is 2.5 million Blue Spruce seedlings ready for sale, and anadditional 3 million seedlings of various types being germinated. These willfulfill two sales contracts valued at $1.5 million RMB (approx. $227,000 CDN)scheduled for delivery and payment in September. A second delivery contractvalued at $750,000 RMB (approx. $114,000 CDN) is under negotiation fordelivery in the fall of 2008.
The Company has secured a landscaping and supply contract with CixiHuahai Plastics Co. Ltd. (Cixi), a public company listed on Shanghai Exchange,located at Cixi, Zhejiang Province of China, valued at $1,167,000 RMB (approx.$177,000 CDN). Under the contract, Maple Leaf will supply seedlings of varioustypes and full landscaping services to 100 mu (16 acres) of Cixi's new plantfacilities. The first shipment of seedlings will commence in the fall of thisyear for a total $150,000 RMB (approx. $22,700 CDN) The balance will be shipped and
planted progressively .
In addition, a Memorandum of Understanding ("MOU") with Cixi has beensigned for the next three phases of the project. The first two phases involvelandscaping the remaining 200 mu (32 acres) of Cixi's new plant facilities,worth a total of $2.2 million RMB (approx. $333,000 CDN),and the third phaseinvolves setting up a joint venture with Cixi to cultivate Blue Spruce andvarious types of Canadian seedlings in a new greenhouse and plantationfacility, worth a total of $5 million RMB (approx. $757,000 CDN).The totalvalue of the MOU and the above contract is approximately $10 million RMB(approx. $1.5 million CDN).
"We're very excited about the Company's immediate developments and sales.Today, all outstanding contracts inherited from the Company's previousmanagement have expired, been fulfilled or cancelled, and Nursery operationsare proceeding on a 'clean slate' from this point on," President and CEORaymond Lai stated. $30 million RMB Grant Application, Inner Mongolia ------------------------------------------------- In a separate significant development, the Company has submitted itsapplication for a government grant of $30 million RMB (approx. $4,500,000 CDN)to the Overseas Chinese Investments Bureau in Inner Mongolia.The grantapplicationwas submitted with the assistance and sponsorship of LiangchengCounty officials.When approved , 40% of the grant must be invested withinLiangcheng County, while the balance of 60% ($18 million RMB or$2.7 million CDN) would be available to the Company for operational andcapital expenses.
"This is a major development for our Inner Mongolian operations. Thesponsorship provided by the local government is an important endorsement forthe Company in the region. Funding of our application by the Overseas ChineseInvestments Bureau would be an official and prestigious endorsement of thehard work and valuable contributions the Company has made in Liangcheng overthe past number of years." President and CEO Raymond Lai stated during hismost recent visit to Liangcheng County earlier this month.
https://www.mlreforestation.com/news_2008_13.php