SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 5, 1997
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
On May 5, 1997, Freeport-McMoRan Copper & Gold Inc. (FCX) issued
a press release announcing the results of an interim report
issued by Strathcona Mineral Services Limited on its technical
audit of the Busang project prepared for Bre-X Minerals Ltd.
(Bre-X). The press release is included as Exhibit 99.1 to this
Form 8-K.
On May 5, 1997, FCX also issued a letter to Bre-X withdrawing
from the Busang project pursuant to the terms of its contractual
agreement. The letter is included as Exhibit 99.2 to this Form
8-K.
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 Press release issued by FCX dated May 5, 1997.
99.2 Letter dated May 5, 1997 terminating FCX's
participation in the activities contemplated
by the agreement entered into effective as of
February 26, 1997 among FCX, Bre-X Minerals
Ltd., PT Askatindo Karya Mineral and PT Amsya
Lyna, and to Amendment Number One thereto entered
into effective as of April 30, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By: /s/ Richard C. Adkerson
------------------------------
Richard C. Adkerson
President and Chief Operating Officer
Date: May 6, 1997
EXHIBIT 99.1
FREEPORT-McMoRan COPPER & GOLD
ANNOUNCES RESULTS OF STRATHCONA AUDIT
NEW ORLEANS, LA., May 5, 1997 -- Freeport-McMoRan Copper &
Gold Inc. (FCX) announced today that it was provided late in
the afternoon on May 4, 1997, the interim report of
Strathcona Mineral Services Limited (Strathcona) on its
technical audit of the Busang project prepared for BRE-X
Minerals LTD (BRE-X). In connection with this audit,
Strathcona completed a closely supervised six-hole core
drilling program with 1,470 meters drilled, which FCX
monitored. Strathcona selected an initial 350 meters of
core for assaying at laboratories in Australia, Indonesia
and Canada.
Strathcona described its assay results as "quite
conclusive" and stated that these results "...along with work
done by Freeport, results from recent drill core samples
submitted by BRE-X, and other investigations and
observations we have made, we are able to express without
reservation the following opinions and conclusions
concerning the main area of interest on the Busang property,
the Southeast Zone 1 South, and to which we anticipate no
changes in our final report...
1)Only trace amounts of gold have been found in the samples
assayed, and there were no samples that gave gold values
of economic interest.
2)As a consequence, we believe there to be virtually no
possibility of an economic gold deposit in the Southeast
Zone 1 South of the Busang property.
3)The assaying of the samples from the Busang property
submitted by BRE-X to Indo Assay Laboratories in
Balikpapan, Indonesia has been of a good standard, and
the gold values reported have reflected the gold in the
samples delivered to the laboratory.
4)The due diligence program conducted by Freeport has been
very thorough and of a high professional standard in all
respects.
5)The gold recovered in samples submitted by BRE-X has
originated from a source other than the Southeast Zone of
the Busang property and has resulted in falsification and
misrepresentation of many thousands of samples with
consequent and subsequent erroneous estimates of gold
resources."
As previously announced, FCX has the right to
participate as a 15 percent owner of the Busang project,
subject to the confirmation of the existence of a
commercially viable resource, which does not appear to exist
based on the information obtained by FCX during its due
diligence review, confirmed by the results of the Strathcona
audit. Consequently, FCX will notify BRE-X that it is
withdrawing from the Busang project pursuant to the terms of
its contractual agreement.
Mr. James R. Moffett, Chairman and Chief Executive
Officer of FCX, stated, "We are very disappointed that the
apparent opportunity for FCX to develop the Busang property
has been eliminated by the findings of our due diligence
efforts, as now confirmed by the Strathcona audit report.
However, we were able to identify this situation promptly,
prior to the expenditure of any funds other than due
diligence expenditures, which were not significant."
EXHIBIT 99.2
May 5, 1997
Bre-X Minerals Ltd. VIA FAX NO. (403) 543-7060
119 14th Street N.W.
Calgary, Alberta
Canada T2N 1Z6
Attn: David G. Walsh
Chairman, President and CEO
PT Askatindo Karya Mineral VIA FAX NO. (62) (21) 829-4013
Complex Gudang Peluru Block D/118
Tebet, Jakarta Selatan
Indonesia
Attn: President Director
PT Amsya Lyna VIA FAX NO. (62) (21) 829-4013
Complex Gudang Peluru Block D/118
Tebet, Jakarta Selatan
Indonesia
Attn: President Director
Gentlemen:
Reference is made to the agreement entered into effective as
of February 26, 1997 among Freeport-McMoRan Copper & Gold Inc.
("FCX") and each of you regarding the proposed development of
mineral resources in East Kalimantan, Indonesia, and to Amendment
Number One thereto entered into effective as of April 30, 1997
(such agreement as so amended, the "Agreement").
FCX has performed the activities contemplated by Section 3
of the Agreement, but has been unable to confirm the existence of
one or more commercially viable gold or other mineral resources
in the areas covered by the Agreement. Accordingly, FCX hereby
terminates its participation in the activities contemplated by
the Agreement.
Very truly yours,
/s/Richard C. Adkerson
----------------------
Richard C. Adkerson
President and
Chief Operating Officer
cc: Rolando C. Francisco - VIA FAX NO. (403) 543-7060
Executive Vice President and
Chief Financial Officer
Bre-X Minerals Ltd.
