Australian gold miner Newcrest Mining Ltd said on Friday it would retain a 70% stake in the Cracow gold mine in northern Queensland state after a deal to sell it to a smaller rival collapsed.
Beadell Resources Ltd said tough market conditions meant it could not complete an equity raising needed to fund the A$200m ($192m) 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 100,000oz 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% of Cracow held by Lion Selection Ltd for A$80m.
By James Thornhill, Reuters
