A group of investors has come forward to offer support to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba. The investor 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, and the consortium has now made the announcement to allow the company’s stakeholders to evaluate the available options.
If the proposed recapitalization deal is approved, the consortium plans to collaborate with Sherritt to bolster its financial structure and liquidity, with a focus on maintaining and enhancing its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capacity in North America. Sherritt had previously stated the need for a substantial infusion of capital to restart its Alberta refinery and Cuban joint venture, which had been impacted by increased U.S. pressure on Cuba.
The Toronto-headquartered company had been in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming normal operations when conditions allow. The decision to halt operations at the Fort Saskatchewan refinery was made after the depletion of feed inventory from the Moa mine in Cuba, a joint venture with Sherritt. The Moa venture had been temporarily halted earlier in the year due to fuel shortages in Cuba following the U.S. sanctions that restricted access to Venezuelan oil.