A cluster of investors is extending a lifeline to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining firm. The group, 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 at the end of 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 shareholders, employees, and other stakeholders to evaluate the available options. If the proposed agreement is approved, the consortium plans to collaborate with Sherritt to strengthen its capital structure and financial liquidity. They aim to safeguard and improve operations at Sherritt’s Fort Saskatchewan refinery in Alberta and its North American facilities for nickel and cobalt processing.
In a previous statement, Sherritt disclosed the need for a substantial infusion of new capital to support the restart of its Alberta refinery and Cuban joint venture, which were forced to close due to increased U.S. pressure on Cuba. The company is in discussions with its senior lenders and noteholders to execute a recapitalization strategy aimed at stabilizing its financial standing and resuming normal activities once conditions allow.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were halted as the country grappled with fuel shortages triggered by the U.S. blocking access to Venezuelan oil in January. Sherritt had previously announced the shutdown of its Fort Saskatchewan refinery after depleting its feed inventory sourced from the Moa mine in Cuba.