Freeport has option to acquire Iriana Mutiara

Freeport has option to acquire Iriana Mutiara

NEW ORLEANS (Reuters): Freeport-McMoRan Copper & Gold Inc said
Friday it has a letter of intent with the owners of PT Iriana
Mutiara Mining providing Freeport with an option to acquire a 90-
percent ownership interest in the Indonesian company, which holds
exploration rights to an area totaling 485,548 hectares (some 1.2
million acres) in central Irian Jaya, Indonesia.

"A substantial portion of (this) area is contiguous to Block
II of our P.T. Irja Eastern Minerals (contract) area and on-trend
with a number of exploration targets we have identified," Chief
Executive James Moffett said.

"Drilling on two prospects in Block II, the Haiura and
Katehawa prospects, has shown encouraging results. In addition,
PT-IMM has discovered a nickel laterite resource which, based on
preliminary results from early stage exploration, appears to have
commercial potential.

"This acreage enhances the prospect of our making a
significant mineral discovery in Irian Jaya outside our P.T.
Freeport Indonesia Block A" area, he said.

P.T. Iriana Mutiara is owned by Battle Mountain Gold Co,
Iriana Resources Corp (Iriana), a Canadian resources company, and
P.T. Mutiara Iriana Minerals, an Indonesian company.

The proposed transaction is subject to execution of a
definitive restructuring agreement, Freeport said.

As proposed, it said, this agreement calls for Freeport to
become the operator of the contract area and spend a minimum of
$500,000 on exploration in the area by December 31, 1998.

After fulfilling the spending requirement and electing to
continue participation beyond June 30, 1999, Freeport would
acquire the 90-percent interest and would fund all exploration
costs up to and including a feasibility study.

The remaining 10-percent interest would continue to be held by
Iriana Resources. If a project in the area is determined to be
feasible, Freeport would be responsible for arranging 100 percent
of the needed construction financing.