A consortium of investors is extending a potential financial rescue to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining firm. 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 the board’s review since then, and the consortium is now making it public to allow the company’s stakeholders to consider their options.
If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity, while safeguarding and improving its assets, including the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capabilities. Sherritt recently disclosed the necessity of a substantial infusion of new capital to support the restart of its Alberta refinery and Cuban joint venture, which were halted due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company mentioned ongoing discussions with its senior lenders and noteholders for a recapitalization strategy aimed at stabilizing its finances and resuming regular operations when conditions permit. Previously, Sherritt announced the suspension of activities 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 were also paused earlier this year due to fuel shortages in the country following the U.S. restrictions on Venezuelan oil access.