A consortium of investors is extending a potential financial rescue to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba.
The group, comprising 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 the board’s consideration since then, with the consortium now publicly disclosing the initiative to allow the company’s stakeholders to evaluate available options.
Should the proposed arrangement be approved, the consortium aims to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding and improving its assets, including the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capabilities.
Sherritt previously highlighted the necessity for a substantial infusion of new capital to support the reactivation of its Alberta refinery and Cuban joint venture, both of which had ceased operations due to heightened U.S. pressures on Cuba. The company has 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 when conditions allow.
The closure of operations at Sherritt’s Fort Saskatchewan refinery was announced after the depletion of feed supplies from the Moa mine in Cuba. Operations at the company’s Moa joint venture in Cuba had been halted earlier in the year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.