Freeport McMoRan thinking of issuing more debt to fund energy deals
TORONTO (miningweekly.com) – New York-listed miner Freeport-McMoRan Copper & Gold on Thursday said it was looking at issuing senior notes in a private placement to help fund its acquisition of two oil ad gas exploration and production companies.
The company in December agreed to buy Plains Exploration & Production Company (PXP) and McMoRan Exploration in deals worth a combined $9-billion.
Earlier this month, copper miner Freeport-McMoRan secured $7-billion in debt financing to help fund its acquisition of oil and gas energy assets. The company is looking at diversifying its production base owing to a lack of new high-quality copper projects.
The company did not say what the value of the private placement would be.
The transactions are expected to close in second-quarter 2013.
Freeport-McMoRan operates seven copper mines located in Arizona and New Mexico, and two molybdenum mines, located in Colorado. In South America, the company operates four copper mines, located in Peru and Chile. The company also operates the massive Grasberg copper mine, in Indonesia, and in Africa, the company mines copper and cobalt in the Democratic Republic of Congo.
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