A group of investors has stepped in to assist Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company. The consortium, 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 in late June.
The consortium has confirmed that the proposal has been under consideration by the board and is making the announcement to allow the company’s shareholders, employees, and stakeholders to evaluate the options available. If the proposal is approved, the investors aim to collaborate with Sherritt to strengthen its financial structure and liquidity while safeguarding and improving its operations at the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capacity.
Sherritt previously disclosed that it required a substantial infusion of new capital to resume operations at its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba. The company had been engaged in discussions with its senior lenders and noteholders regarding a recapitalization plan to stabilize its financial position and resume normal activities when conditions allow.
The decision to halt operations at the Fort Saskatchewan refinery was made after the depletion of feed inventory supplied from its Moa mine in Cuba. Activities at Sherritt’s Moa joint venture in Cuba were also suspended earlier this year due to fuel shortages in the country following the U.S. restrictions on Venezuelan oil access in January.