A cluster of investors is extending a potential financial support to Sherritt International Corp. following the impact of U.S. sanctions on the Cuban operations of the Canadian mining company.
The group, which includes an undisclosed major U.S. investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt’s board of directors in late June. This proposal has been under consideration by the board since then, with the consortium now publicly announcing the initiative to allow shareholders, employees, and other stakeholders to evaluate their options.
Should the proposed plan be approved, the consortium aims to collaborate with Sherritt to enhance its financial structure and liquidity. Additionally, the focus will be on safeguarding and improving its refinery in Fort Saskatchewan, Alberta, as well as its nickel and cobalt processing capabilities in North America.
Earlier, Sherritt had disclosed the necessity for a substantial infusion of fresh capital to support the reopening of its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company had been in discussions with its primary lenders and noteholders regarding a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities once conditions permit. The decision to halt operations at the Fort Saskatchewan refinery came after the exhaustion of feed inventory from the Moa mine in Cuba, a joint venture site that had been paused earlier this year due to fuel shortages in Cuba following the U.S. restrictions on oil from Venezuela.
