A group of investors is extending support to 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 proposal has been under consideration by the board since then, with the consortium now making the announcement to allow the company’s stakeholders to evaluate available options.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its operations at the Fort Saskatchewan, Alberta refinery, and its nickel and cobalt processing capabilities in North America. Sherritt previously disclosed the need for a substantial infusion of capital to recommence operations at its Alberta refinery and Cuban joint venture, which were impacted by heightened U.S. pressure on Cuba.
The Toronto-headquartered company is in discussions with its senior lenders and noteholders regarding a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities when conditions permit. The decision to halt operations at the Fort Saskatchewan refinery was made after depleting the feed inventory sourced from its Moa mine in Cuba. The company’s Moa joint venture in Cuba was temporarily suspended earlier this year due to fuel shortages in the country following the U.S. restricting oil access from Venezuela in January.