A group of investors is extending support to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba. The consortium, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a non-binding recapitalization proposal to Sherritt’s board of directors in late June.
The consortium has confirmed that the proposal has been under consideration by the board since then and is now being announced to allow the company’s stakeholders, including shareholders and employees, to evaluate potential options. If approved, the consortium aims to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan refinery in Alberta and its processing operations for nickel and cobalt in North America.
Sherritt had previously disclosed the need for a substantial infusion of new capital to support the restart of its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba. The company had been engaging in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities as conditions permit.
The decision to close operations at the Fort Saskatchewan refinery was made after the depletion of feed inventory supplied by the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were also temporarily halted earlier this year due to fuel shortages caused by the U.S. embargo on Venezuelan oil imports.