A group of investors is extending support to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba. The consortium, 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 consortium has confirmed that the proposal has been under consideration by the board and has now been made public for the benefit of Sherritt’s stakeholders to evaluate potential alternatives. If approved, the investors aim to collaborate with Sherritt to enhance its financial structure and liquidity, focusing on maintaining its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing capabilities in North America.
Sherritt recently disclosed the need for a substantial infusion of new funds to support the reopening of its Alberta refinery and Cuban joint venture, both of which were forced to close due to increased U.S. pressure on Cuba. The company is engaging in discussions with its primary lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming regular operations when conditions allow.
Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery due to the depletion of feedstock supply from its Moa mine in Cuba. The pause in operations at the Moa joint venture in Cuba was prompted by fuel shortages in the country following the U.S. embargo on Venezuelan oil earlier this year.