Australia's Newcrest to keep stake in Cracow mine
SYDNEY, July 4 (Reuters) - Australian gold miner Newcrest Mining Ltd (NCM.AX) said on Friday it would retain a 70 percent stake in the Cracow gold mine in northern Queensland state after a deal to sell it to a smaller rival collapsed.
Beadell Resources Ltd (BDR.AX) said tough market conditions meant it could not complete an equity raising needed to fund the A$200 million ($192 million) purchase, adding that it hoped to work with Newcrest to identify future opportunities.
"Cracow is a quality asset and an efficient producer, delivering more than 100,000 ounces of gold annually (100% basis). Drilling results continue to confirm the exploration potential that exists around Cracow," Newcrest said in a statement.
As a result of the Beadell deal collapse, Newcrest now has an option to acquire the remaining 30 percent of Cracow held by Lion Selection Ltd (LST.AX) for A$80 million.
Newcrest's shares were off 1.7 percent at A$29.48 on Friday, with Beadell tumbling 37.5 percent to A$0.25, in a broader market up 0.5 percent. ($1=A$1.04) (Reporting by James Thornhill, editing by Jonathan Standing)
