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Gold is poured at Agnico-Eagle's Meadowbank Mine.
Gold is poured at Agnico-Eagle's Meadowbank Mine.
(CHRIS WATTIE/REUTERS)

Franco-Nevada shares sag as $500-million deal struggles

Franco-Nevada Corp.’s $500-million (U.S.) share offering is struggling to sell, according to sources familiar with the process, and the weak demand has created uncertainty.

At first, the share offering seemed like a sign of hope for the mining sector. Although the volume of industry financings has been ticking higher, progress has been slow, so the large deal made it look like confidence was coming back in a big way. Now that the sale is struggling, there is less reason to be as optimistic about the industry’s outlook.