June 5 (Bloomberg) -- Argentina and Chile are close to an agreement on dividing tax revenue from a mine that Barrick Gold Corp. is developing on their common border, newspaper El Mercurio reported, without saying where it got the information.

Argentina may garner a greater share of tax revenue from the project, called Pascua Lama, than the 20 percent Chile had proposed, the newspaper said.

Barrick still has to receive additional permits from Argentina in order to move ahead with Pascua Lama, which will cost $3 billion to develop, according to the newspaper.

Toronto-based Barrick is the world's largest gold producer.

To contact the reporters on this story: Heather Walsh in Santiago at hlwalsh@bloomberg.net.

Last Updated: June 5, 2008 10:06 EDT