Lion has a 30% joint venture interest in the Cracow Gold Mine in Queensland. Newcrest Mining Limited (Newcrest) holds a 70% interest and is the manager of the Cracow Joint Venture.
On 4 April 2008, following a competitive bidding process, Newcrest entered into a conditional agreement with Beadell Resources Limited (Beadell) to sell its 70% interest in the Cracow Gold Mine for $200 million. After carefully reviewing the value of the agreement and Lion’s evolving strategy in the context of recent events, the Lion Board concluded that the greatest potential for its shareholders to realise maximum value from the Cracow Gold Mine would be for Lion to dispose of its 30% Cracow Interest to Beadell. A conditional sale agreement was entered into with Beadell on 15 May 2008, the full details of which are outlined in Lion’s ASX announcement on the same day.