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.
This proposal has been under consideration by the board since then, and the consortium has decided to make the announcement to allow the company’s shareholders, employees, and other stakeholders to evaluate their options. If approved, the consortium plans to collaborate with Sherritt to strengthen its financial foundation and liquidity, while safeguarding and enhancing its facilities in Fort Saskatchewan, Alberta, and its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the need for a substantial injection of new capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, which were suspended due to increased pressure from the U.S. on Cuba. The company is currently engaged in discussions with its senior lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities once conditions permit.
Earlier, Sherritt had announced the temporary halt of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory supplied from its Moa mine in Cuba. Operations at the Moa joint venture in Cuba were also paused earlier this year in response to fuel shortages in the country resulting from the U.S. ceasing oil supply from Venezuela in January.
