A consortium, led by an undisclosed U.S. investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has proposed a non-binding recapitalization plan to aid Sherritt International Corp. The proposal, presented to Sherritt’s board in late June, aims to assist the Canadian mining company in the wake of U.S. sanctions against Cuba.
This initiative, currently under consideration by the board, has been disclosed to allow Sherritt’s stakeholders to evaluate potential alternatives. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity, while safeguarding its operations at the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently indicated the necessity for a substantial infusion of new capital to support the recommencement of operations at its Alberta refinery and Cuban joint venture, which were impacted by heightened U.S. sanctions against Cuba. The company is engaged in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities when conditions permit.
The decision to temporarily halt operations at the Fort Saskatchewan refinery followed the depletion of feed inventory sourced from the Moa mine in Cuba. Concurrently, operations at Sherritt’s Moa joint venture in Cuba were halted earlier this year in response to fuel shortages in the country resulting from the U.S. embargo on Venezuelan oil exports.
