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 unnamed 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, under consideration by the board since then, aims to provide stakeholders, shareholders, and employees with alternative options to evaluate.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America. Sherritt had previously disclosed the need for a substantial infusion of capital to support the reopening of its Alberta refinery and Cuban joint venture that were impacted by heightened U.S. pressure on Cuba.
In response to the challenges faced, Sherritt engaged in discussions with senior lenders and noteholders to explore recapitalization strategies aimed at stabilizing its financial position and resuming normal operations when conditions allow. The company had earlier announced the temporary closure of its Fort Saskatchewan refinery due to the depletion of feed inventory sourced from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were halted earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.