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 proposal has been under consideration by the board since then, and the consortium has decided to make the announcement to allow the company’s stakeholders to evaluate the available 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 North American nickel and cobalt processing capabilities.
Sherritt had previously communicated the need for a substantial infusion of capital to resume operations at its Alberta refinery and Cuban joint venture, which were impacted by increased U.S. pressure on Cuba. The company had initiated discussions with its senior lenders and noteholders to explore a recapitalization strategy to stabilize its financial position and resume normal activities when feasible.
The shutdown of operations at Sherritt’s Fort Saskatchewan refinery was a result of depleting feed inventory from its Moa mine in Cuba. The company’s activities at the Moa joint venture in Cuba had been halted earlier due to fuel shortages in the country caused by the U.S. sanctions that restricted access to Venezuelan oil.
