A cluster of investors has extended 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. main investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., presented a preliminary recapitalization plan to Sherritt’s board of directors in late June.
The consortium disclosed that the proposal has been under consideration by the board and decided to make it public to allow the company’s stakeholders, including shareholders and employees, to evaluate potential options independently. If the proposal moves forward, the investor group aims to collaborate with Sherritt to reinforce its financial structure and liquidity, focusing on maintaining and enhancing its facilities in Fort Saskatchewan, Alberta, along with its nickel and cobalt processing capabilities in North America.
Recently, Sherritt revealed the necessity for a substantial infusion of new funds to support the restart of its Alberta refinery and Cuban joint venture, both affected by heightened U.S. restrictions on Cuba. The company has been engaging in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and returning to normal operations when conditions permit.
Sherritt had previously announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory supplied from its Moa mine in Cuba. Operations at the company’s Cuban joint venture were also halted earlier this year due to fuel shortages in Cuba following the U.S. embargo on Venezuelan oil in January.