The shares of African Barrick Gold (ABG) sagged about 20 per cent on Tuesday.

The slip in the stock price followed the announcement that its Canadian parent had ended talks of a potential sale to China National Gold.

Barrick owns and operates gold mines in Canada, the United States, Peru, Argentina, Chile, Australia and Papua New Guinea.

African Barrick shares were down about 86 pence at 358 pence during intraday trading on Tuesday on the London Stock Exchange (LSE), where it is quoted.

Shares of Barrick Gold Corp., which owns about three-quarters of the ABG shares outstanding, will likely be affected by the announcement when North American markets open.

Barrick Gold shares closed Monday at C$33.57 ($34) on the Toronto Stock Exchange, near a 52-week low of $31.18, prior to the overnight announcement,
Barrick confirmed last August that it was in talks with China National Gold Group Corp. over the future of its African assets.

ABG was formed when Barrick decided to spin off its African operations into a separate company and its shares began trading on the London exchange in March 2010.

Barrick holds a 73.9 percent interest in the company, which is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.

“These discussions were part of our on-going efforts to identify opportunities to optimize our portfolio,” said Barrick president and CEO Jamie Sokalsky.

“However, we are approaching this in a prudent and disciplined manner and will only proceed with opportunities that generate acceptable value for Barrick. African Barrick Gold’s assets hold significant potential, and we will continue to look for ways to best realize that value for our shareholders.”

ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.