MMR is engaged in the exploration, development and production of oil and natural gas in the shallow waters of the Gulf of Mexico Shelf. MMR is currently undertaking a major capital program involving its Davy Jones discovery and other high potential exploration opportunities. FCX’s investment will allow it to participate in MMR’s highly prospective North American exploration and development activities, which have the potential to generate significant value.

 

FCX’s investment was negotiated between a special committee of independent directors of the FCX board of directors and a special committee of independent directors of the MMR board of directors. The special committees each engaged independent financial and legal advisors in connection with this transaction. The FCX special committee was advised by Lazard Frères & Co and the law firm of Wachtell, Lipton, Rosen & Katz.

 

The closing of the investment is subject to the completion of MMR’s property acquisition from PXP, MMR shareholder approval of the issuance of securities to FCX, and other customary closing conditions. Closing of the investment is expected to occur by year-end 2010.

 

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world’s largest producer of molybdenum.

 

The company’s portfolio of assets includes the Grasberg mining complex, the world’s largest copper and gold mine in terms of recoverable reserves, significant mining operations in the Americas, including the large scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo.