A group of investors is extending support to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company. The consortium, comprising 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, with the consortium now making the announcement to allow the company’s stakeholders to evaluate potential options.
If approved, the consortium aims to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on safeguarding and augmenting its operations at the Fort Saskatchewan refinery in Alberta, and its nickel and cobalt processing capabilities in North America. Sherritt had previously disclosed the need for a substantial infusion of capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company has been in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities when feasible. Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba had also been temporarily halted earlier in the year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.