Kiena plans stock split to broaden share market

Kiena Gold Mines, which almost doubled its profit in 1986, (to $6,959,000 from $3,778,000 in 1985), plans a stock split of its common shares, on a two-for-one basis.

Shareholders will be asked to approve the move, at the annual and special meeting, April 7.

Kiena currently trades in the $31-$32 a share range. Its present share capital consists of 15,000,000 common shares, of which 5,876,848 are issued and outstanding.

The company hasn’t responded to the same degree as other gold shares, President Henry Brehaut tells The Northern Miner, explaining the rationale behind the proposed stock split.

The intent generally is to broaden the company’s equity base and the market for the company’s shares. The split would not change the shareholders’ equity or interest in the company, Mr Brehaut said.

“There may not be an immediate effect, but we are looking for a long-term impact,” he said.

Campbell Red Lake is the beneficial owner of 3,331,203, (or about 56.7%) of the outstanding Kiena shares, and is expected to vote in favor of the split.

In 1986, Kiena produced 72,694 oz gold, compared with 70,034 oz in the previous year, and had revenue in the latest year of $36,452,000, well up from $29,787,000 in 1985.