Freeport-McMoRan Copper & Gold Inc. Announces Final Mandatory Redemption of its Silver-Denominated Preferred Stock.NEW ORLEANS -- Freeport-McMoRan Copper & Gold Inc. (NYSE NYSE See: New York Stock Exchange : FCX FCX French Connexion (gaming site) FCX Freeport-McMoran Copper & Gold Inc (stock symbol) FCX Fuel Cell Experiment (Honda) FCX Fire Coordination Exercise FCX Fire Control Exercise ) announced today the final mandatory redemption, on August 1, 2006, of its Silver-Denominated Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and the related redemption of each remaining outstanding depositary share representing 0.003125 shares of its Silver-Denominated Preferred Stock (NYSE: FCX Pr D, CUSIP CUSIP See: Committee on Uniform Securities Identification Procedures CUSIP See Committee on Uniform Securities Identification Procedures. 35671D865). There are currently 4,760,000 depositary shares of FCX Pr D outstanding. Each depositary share of FCX Pr D will be redeemed for a cash amount equal to the dollar equivalent of the value of 0.5 ounce of silver, calculated using the average of the London silver fixing spot price for an ounce of silver in the London bullion market The London bullion market, is entirely different from, but often confused with the London Metal Exchange. Only base metals are traded at the London Metal Exchange (LME), while gold and silver are traded by members of the London Bullion Market Association (LBMA), loosely overseen by on each of the 20 trading days ending on June 28, 2006. In addition, holders of the depositary shares of FCX Pr D as of July 17, 2006, will be entitled to receive the final regular quarterly dividends payable Dividends payable The declared dividend dollar amount that a company is obligated to pay. on August 1, 2006. The redemption on August 1, 2006, will be the final of eight annual mandatory partial redemptions. Written notice of the specific terms for the final mandatory redemption, along with a transmittal form, will be mailed to registered holders of the depositary shares by Mellon Investor Services LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Mellon), the redemption agent, on or about June 15, 2006. Registered holders of depositary shares will be instructed to deliver the transmittal form along with their certificates representing depositary shares to Mellon in order to receive the redemption amount plus any accrued and unpaid dividends. Any questions may also be directed to Mellon at 1-800-777-3674. The distribution of cash proceeds from the mandatory redemption will be a taxable event. Depositary shareholders consult their tax advisors regarding their individual circumstances. FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. Additional information on FCX is available on our web site, www.fcx.com. |
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