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MAGMA COPPER COMPANY ANNOUNCES $90 MILLION CONVERTIBLE PREFERRED STOCK ISSUE

 TUCSON, Ariz., Nov. 17 /PRNewswire/ -- Magma Copper Company (NYSE: MCU) announced today that it intends to issue $90 million of Cumulative Convertible Preferred Stock, Series E, plus up to an additional $10 million pursuant to an over-allotment option granted to the underwriters.
 The net proceeds from the sale of the Convertible Preferred Stock will be used for general corporate purposes, which may include the development of projects. J. Burgess Winter, Magma's President and Chief Executive Officer, said, "Although we continue to have a favorable outlook for the copper price, Magma must protect its ability to complete its strategic growth programs, despite the current weakness in the copper price. The issuance of the preferred stock will further improve our liquidity and financial position and increase our confidence that the Robinson property, a world class copper and gold ore body near Ely, Nevada, and other projects can be developed without delays imposed by a lack of financing or low copper price. Development of the Robinson property and an intensified cost cutting program are key components of Magma's plan to achieve a target of $0.50 net cash operating cost per pound in the next three years. The preferred stock issue will also reduce the Company's debt to 38 percent of total capital and, at higher copper prices, provide funding for other opportunities as they arise."
 The Company is in the process of making application to list the Series E Preferred Stock on the New York Stock Exchange. The underwriters of the issue, which will be a draw-down of the Company's omnibus-shelf registration statement filed with the Securities and Exchange Commission earlier this year, are Merrill Lynch & Co. and Goldman, Sachs & Co.
 Magma Copper Company, one of the largest primary copper producers in the United States, produces high-quality copper cathode and rod for sale to customers worldwide. Magma has operations in San Manuel, Miami and Superior, Arizona, and Ely, Nevada. Magma Metals Company, a wholly owned subsidiary, operates Magma's smelting and refining complex, located in San Manuel, and conducts the Company's commercial activities. Corporate headquarters are in Tucson, Arizona.
 This news release shall not constitute an offer to sell or the solicitation of an offer to buy. Any sale shall be made solely by means of the prospectus and related prospectus supplement.
 -0- 11/17/93
 /CONTACT; Richard P. Johnson, 602-575-5670, or Kimberly L. Wick, 602-575-5674, both of Magma Copper Company/
 (MCU)


CO: Magma Copper Company ST: Arizona IN: MNG SU: OFR

TW-MP -- NY029 -- 5337 11/17/93 09:41 EST
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Publication:PR Newswire
Date:Nov 17, 1993
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