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TORONTO/VANCOUVER, April 5 (Reuters) - China's Shandong Gold Mining Co Ltd 600547.SS is in advanced talks to buy a 50 percent stake in Barrick Gold Corp 's ABX.TO Veladero gold mine in Argentina, in a deal that could fetch more than $1 billion, people familiar with the process told Reuters.
Barrick ABX.N is no longer in discussions with China's Zijin Mining Group Co Ltd 601899.SS about the Veladero mine stake sale, which is one of the Canadian miner's five core mines, the people said.
Shandong did not immediately respond to a request for comment from Reuters, but the company halted trading in its shares in Shanghai late on Wednesday pending an announcement. Barrick and Zijin declined to comment.
There is no certainty that the talks will result in a transaction, the people said.
The people, whom Reuters spoke to over a period of several days, declined to be named as the talks were confidential.
As part of a plan being discussed, Shandong would acquire 50 percent of Barrick's nearby undeveloped Pascua-Lama gold and silver project, one of the people said.
Reuters reported on Oct. 25 that Zijin and Shandong had held separate talks with Barrick to buy half of Veladero. Barrick would like the buyer of the Veladero stake also to make an investment in Pascua-Lama, Reuters reported at the time.