TORONTO (miningweekly.com) – NYSE-listed Freeport-McMoRan Copper & Gold raised $750-million by selling 26,8-million shares on the open market, the firm said on Thursday morning.

The shares were priced at an average of $28 apiece, and the offering generated net proceeds of about $740-million, which Freeport will use for debt repayments, working capital and capital expenditure.

“The proceeds from this equity offering, together with the actions we have taken to reduce costs and capital expenditures, place FCX in a strong financial position during this period of weak economic conditions,” said chairperson James Moffett and CEO Richard Adkerson.

“We are well situated with our flexible operating structure, which enables us to adjust operations to adapt to varying market conditions while preserving our long-lived reserves and future growth options.”

Freeport said last month it may sell the shares to repay outstanding amounts under revolving credit facilities, and to finance working capital and capital expenditure, as it battles low prices for its metals and difficult financial markets.

The group, which mines copper, gold and molybdenum, has already announced a series of curtailments, project deferrals and the suspension of its dividend, in a move to free up cash.

However, it is still determined to complete the large Tenke-Fungurume copper/cobalt project, in the Democratic Republic of Congo, which is scheduled to come onstream by the end of this year.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.