MONCTON, NB, Dec. 7 /CNW/ - Major Drilling Group International Inc. (TSX: MDI) ("Major Drilling" or the "Company") announced today that its board of directors has approved a stock split of the Company's issued and outstanding common shares (the "Common Shares") on a three (3) for one (1) basis. The record date for the stock split is March 23, 2011. This decision is subject to shareholder approval, to approval by the Toronto Stock Exchange and to the filing by the Company of articles of amendment. If approved, each shareholder will receive two additional Common Shares for each Common Share held on the stock split record date. Pursuant to the rules of the Toronto Stock Exchange, the Company's Common Shares will commence trading on a subdivided basis at the opening of the business on March 21, 2011, being the second trading day prior to the stock split record date. Share certificates representing the additional common shares resulting from the stock split will be mailed to the Company's registered shareholders.
The Company intends to maintain its dividend policy, as adjusted to take into account the stock split.
It is believed that the stock split will encourage greater liquidity for the Company's Common Shares and provide opportunities for ownership of the Company's Common Shares by a wider group of investors.
A Special Meeting of Shareholders will be held in relation to this matter in Toronto on March 9, 2011 at a time and location to be announced. Members of the Board of Directors will be available after the Special Meeting to discuss the Company's "Say on Pay" initiative with any interested shareholders.
Based in Moncton, New Brunswick, Major Drilling Group International Inc. is one of the world's largest metals and minerals contract drilling service companies. To support its customers' mining operations and mineral exploration and environmental drilling activities, Major Drilling maintains operations in Canada, the United States, South and Central America, Australia, Asia, and Africa.
For further information: For further information:
Denis Larocque, Chief Financial Officer
Tel: (506) 857-8636
Fax: (506) 857-9211