A group of investors is stepping in to assist Sherritt International Corp. as the Canadian mining company faces challenges due to U.S. sanctions against 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. This proposal has been under consideration by the board since then, and the consortium has now made the announcement to allow the company’s stakeholders to evaluate the options available.
If the proposed agreement is approved, the consortium plans to collaborate with Sherritt to strengthen its financial structure and liquidity. They aim to maintain and improve the operations of Sherritt’s Fort Saskatchewan facility in Alberta, as well as its nickel and cobalt processing capabilities in North America.
Sherritt had previously disclosed its need for a substantial infusion of new capital to support the reopening of its Alberta refinery and Cuban joint venture, which had been halted due to increased U.S. pressure on Cuba. The company had been in discussions with its senior lenders and noteholders to implement a recapitalization strategy to stabilize its financial position and resume normal activities when feasible.
The Fort Saskatchewan refinery had been shut down after depleting its feed inventory from the Moa mine in Cuba. Operations at Sherritt’s joint venture in Cuba had also been paused earlier in the year due to fuel shortages in the country following the U.S. sanctions that restricted access to Venezuelan oil.
