A set 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 group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., have presented a preliminary recapitalization plan to Sherritt’s board of directors at the end of June. This proposal has been under consideration by the board, and its announcement now aims to allow the company’s stakeholders to review potential alternatives.
If approved, the consortium plans to collaborate with Sherritt to reinforce its financial structure and liquidity, with a focus on maintaining and improving its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the necessity for a significant infusion of new capital to support the reopening of its Alberta refinery and Cuban joint venture, both of which were impacted by heightened U.S. restrictions on Cuba.
The company has been engaged in discussions with its key lenders and noteholders regarding a restructuring initiative aimed at stabilizing its financial position and returning to normal operations once conditions permit. Earlier, Sherritt had ceased operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba.
Activities at Sherritt’s Cuban joint venture were halted earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil access in January.