A consortium of investors has extended a potential financial lifeline to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba.
The investor group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., presented a preliminary recapitalization plan to Sherritt’s board of directors in late June. The proposal has been under consideration by the board since then, with the consortium now publicly disclosing the initiative to allow stakeholders, shareholders, and employees to evaluate available options.
Should the proposed agreement be approved, the consortium aims to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on maintaining and improving its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Recently, Sherritt announced the necessity of securing a substantial amount of fresh capital to support the reactivation of its Alberta refinery and Cuban joint venture, which were forced to halt operations due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company has been engaged in discussions with its principal lenders and noteholders regarding a restructuring strategy aimed at stabilizing its financial position and resuming regular activities when conditions allow. Earlier, Sherritt had declared the suspension of activities at its Fort Saskatchewan refinery after depleting the feed inventory supplied by its Moa mine in Cuba.
Operations at Sherritt’s joint venture in Cuba were put on hold earlier this year as the country encountered fuel shortages resulting from the U.S. blockade on oil shipments from Venezuela in January.
