-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LhbB5L8l4gbv/l3WgYATpscx7xW+/7tx2h9IZuQXWzgtqI9aSsW6sbVuF/56oOUj L3Bs23DyAvRPiPsP4+HyJw== 0000831259-97-000015.txt : 19970507 0000831259-97-000015.hdr.sgml : 19970507 ACCESSION NUMBER: 0000831259-97-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970505 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970506 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FREEPORT MCMORAN COPPER & GOLD INC CENTRAL INDEX KEY: 0000831259 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 742480931 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09916 FILM NUMBER: 97596104 BUSINESS ADDRESS: STREET 1: 1615 POYDRAS ST CITY: NEW ORLEANS STATE: LA ZIP: 70112 BUSINESS PHONE: 5045824000 FORMER COMPANY: FORMER CONFORMED NAME: FREEPORT MCMORAN COPPER COMPANY INC DATE OF NAME CHANGE: 19910114 8-K 1 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 EX-99 2 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." EX-99 3 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. -----END PRIVACY-ENHANCED MESSAGE-----