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): March 26, 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.
The following news release was issued by Freeport-McMoRan Copper
& Gold Inc. on March 26, 1997:
NEW ORLEANS, LA., March 26, 1997 -- Freeport-McMoRan Copper &
Gold Inc. (FCX) has been in the process of undertaking due
diligence activities with regard to the previously announced
transaction with BRE-X Minerals LTD (BRE-X) and Indonesian
interests whereby, subject to due diligence, FCX has agreed to
acquire a 15 percent interest in two Indonesian companies that
are expected to be granted Contracts of Work (COWs) to explore
and develop the mining rights in the Busang II and Busang III
areas of East Kalimantan, Indonesia.
During the past three weeks, FCX has drilled seven core
holes within the Busang II project area to confirm the results of
core holes previously drilled by BRE-X. To date, analyses of
these cores, which remain incomplete, indicate insignificant
amounts of gold.
FCX informed BRE-X of these findings. Representatives of
BRE-X met with FCX's technical team in Jakarta, Indonesia on
March 26, 1997, at which time all information available to FCX
was presented to the BRE-X representatives. Today, FCX was
informed by BRE-X that, based on the recommendation of BRE-X's
independent technical consultants, BRE-X was undertaking a
review that includes drilling additional core holes in the
Busang II area. In addition, BRE-X advised FCX that its
independent technical consultants had informed BRE-X that there
appears to be a strong possibility that the potential gold
resources on the Busang project as previously reported by BRE-X
have been overstated because of invalid samples and assaying of
these samples.
FCX will monitor and cooperate with the on-going review and
drilling at the Busang project. Under the terms of its agreement
with BRE-X and Indonesian interests, FCX has the right to
participate as a 15 percent owner of the Busang project by paying
25 percent of the total cost of delineating a proven reserve and
constructing the initial Busang complex, up to $400 million,
subject to the completion of due diligence satisfactory to FCX.
FCX will elect to participate in the development of the Busang
project only if development is, in FCX's opinion, economically
feasible.
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold and silver in Irian Jaya,
Indonesia and the smelting and refining of copper concentrates in
Spain. FCX is also involved in a joint venture to construct and
operate a smelter/refinery in Indonesia.
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/: Michael A. Weaver
------------------------------
Michael A. Weaver
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: March 26, 1997
