A collection of investors is extending a possible financial support to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba.
This investor group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt’s board of directors in late June. The proposal has been under board review since then, with the consortium’s decision to make it public now to allow the company’s stakeholders to evaluate available options.
If approved, the investors aim to collaborate with Sherritt to strengthen its financial position and liquidity, while safeguarding and improving its Fort Saskatchewan, Alberta, refinery and nickel and cobalt processing capabilities in North America.
Sherritt had previously disclosed the need for substantial new funding to restart its Alberta refinery and Cuban joint venture, which had been halted due to increased pressure from the U.S. government on Cuba.
The company, headquartered in Toronto, had been engaging in discussions with its primary lenders and noteholders to execute a recapitalization strategy aimed at stabilizing its financial standing and resuming regular operations once feasible. Earlier, Sherritt had announced the suspension of activities at its Fort Saskatchewan refinery due to the depletion of feed inventory sourced from its Moa mine in Cuba.
Furthermore, operations at Sherritt’s joint venture in Cuba had been temporarily halted earlier in the year due to fuel shortages in the country following the U.S.’s restriction on oil access from Venezuela in January.