A consortium of investors, led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has proposed a non-binding recapitalization plan to assist Sherritt International Corp. The proposal, presented to Sherritt’s board of directors in late June, aims to address the challenges faced by the Canadian mining company following the impact of U.S. sanctions on Cuba.
The consortium has confirmed that the proposal has been under review by the board and is now being disclosed to allow shareholders, employees, and other stakeholders to evaluate potential alternatives. If approved, the investors intend to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on supporting the company’s operations at its Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capabilities.
Sherritt recently disclosed its urgent need for substantial new funding to restart its Alberta refinery and Cuban joint venture, both of which were temporarily closed due to heightened U.S. pressure on Cuba. The company is in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming normal business activities when feasible.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were suspended due to fuel shortages caused by the U.S. oil embargo on Venezuela. The closure of the Fort Saskatchewan refinery was also announced after exhausting its feed inventory from the Moa mine in Cuba. Sherritt’s efforts to navigate these challenges reflect the complex impact of geopolitical dynamics on its operations.
The proposed recapitalization plan offers a potential path forward for Sherritt International Corp. as it seeks to overcome the obstacles posed by external factors and sustain its critical refining and processing operations in North America.
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