A group of investors is stepping in to help Sherritt International Corp. following the impact of U.S. sanctions on Cuba, which have affected the Canadian mining company. The consortium, which includes 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. This proposal has been under consideration by the board since then, and the consortium is now making it public to allow the company’s stakeholders to evaluate their options.
If the proposal is approved, the consortium plans to collaborate with Sherritt to address its capital structure and liquidity issues while safeguarding and improving its operations at the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing facilities. Sherritt recently disclosed the need for a substantial infusion of capital to support the reopening of its Alberta refinery and Cuban joint venture, both of which were halted due to heightened U.S. pressure on Cuba.
Sherritt had previously announced discussions with its senior lenders and noteholders to pursue a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities when conditions allow. The company had to halt operations at its Fort Saskatchewan refinery after depleting its feed inventory from the Moa mine in Cuba. Furthermore, operations at Sherritt’s Moa joint venture in Cuba were put on hold earlier this year due to fuel shortages in the country resulting from the U.S. sanctions on Venezuela’s oil supply.