A consortium of investors led by an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd. has presented a non-binding recapitalization proposal to Sherritt International Corp. The proposal, which has been under consideration by Sherritt’s board since late June, aims to address the challenges faced by the Canadian mining company due to U.S. sanctions against Cuba.
The consortium’s plan, if approved, will focus on stabilizing Sherritt’s capital structure and liquidity while safeguarding and enhancing its operations at the Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capabilities.
Sherritt recently disclosed the need for a significant infusion of new capital to support the resumption of operations at its Alberta refinery and its Cuban joint venture, which were forced to halt activities following increased U.S. pressure on Cuba.
In response to the situation, Sherritt has been in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at strengthening its financial position and resuming normal operations once conditions allow.
The company had previously announced the temporary closure of its Fort Saskatchewan refinery after depleting its feed inventory supplied by the Moa mine in Cuba. Operations at the Moa joint venture in Cuba had been halted earlier in the year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil imports.
The move by the consortium comes as Sherritt seeks to navigate the challenges posed by the geopolitical landscape and ensure the sustainability of its operations in the face of external pressures.
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