A team of investors is extending help 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 and has chosen to disclose this development to allow shareholders, employees, and other stakeholders to evaluate available options. Should the proposed agreement be approved, the investors plan to collaborate with Sherritt to enhance its financial stability and liquidity, with a focus on maintaining and improving its Fort Saskatchewan refinery in Alberta, along with its nickel and cobalt processing capabilities in North America.
Sherritt had previously communicated the need for a substantial infusion of capital to resume operations at its Alberta refinery and Cuban joint venture, both of which were impacted by increased U.S. pressure on Cuba. The company had been engaged in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities at an opportune time.
The Fort Saskatchewan refinery had to be shut down after depleting its feed inventory from the Moa mine in Cuba. The operations at Sherritt’s Moa joint venture in Cuba had also been halted earlier due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.