A group of investors has offered support to Sherritt International Corp. to help the Canadian mining company overcome challenges caused by U.S. sanctions on Cuba. The consortium, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., presented a preliminary recapitalization plan 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 it public to allow the company’s stakeholders to evaluate their options.
If approved, the investors aim to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding its Fort Saskatchewan, Alta., refinery and North American nickel and cobalt processing capabilities. In a recent announcement, Sherritt disclosed the need for a substantial infusion of new funding to restart its Alberta refinery and Cuban joint venture, which were forced to close due to increased pressure from the U.S. on Cuba.
Sherritt has been in discussions with its principal lenders and noteholders to implement a recapitalization strategy to stabilize its financial position and resume operations when feasible. The company had previously ceased operations at its Fort Saskatchewan refinery due to the depletion of raw materials supplied by its Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba were halted earlier this year as the country faced fuel shortages following the U.S. embargo on Venezuelan oil in January.
