Freeport completes sale of preferred stock, close transaction with Rio Tinto

Giant miner Freeport-McMoRan Copper &Gold Inc. (FCX) announced Tuesday that it has completed its private offering of $1.1 billion of Convertible Perpetual Preferred Stock, $100 million higher than initial plan.

The proceed from the offering will be used to buy back FCX?s 12-13 percent shares from Rio Tinto.

Richard C. Adkerson, President and CEO of FCX, said, ?We are pleased with the success of this transaction. It expands our investor base and provides our common shareholders greater participation in the value of our Grasberg copper and gold mining complex, all with no increase in our debt. We look forward to continuing our long-term and mutually beneficial partnership with Rio Tinto through their joint venture participation in our Grasberg operations.?

The offering generated net proceeds of approximately $1,067 million. FCX used approximately $881.9 million of net proceeds to acquire 23.9 million shares of FCX common stock owned by Rio Tinto at approximately $36.85 per share. This transaction was also completed Tuesday. The remainder of the net proceeds will be used for general corporate purposes. As a result of this transaction, FCX's class B common shares outstanding approximate 177 million shares.

FCX, through its subsidiary PT. Freeport Indonesia operates one of the world?s biggest copper and gold mining complex in Papua province. (alex)