A consortium of investors is stepping in to assist Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company. This group, which includes a prominent U.S. investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt’s board in late June.
The proposal has been under consideration by the board since then, and its announcement aims to provide transparency to the company’s stakeholders, allowing them to evaluate potential alternatives. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on safeguarding its Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing operations in North America.
Sherritt recently disclosed the need for substantial new funding to restart its operations in Alberta and Cuba, which were impacted by increased pressure from the U.S. The company is currently engaged in discussions with its key lenders and noteholders to implement a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities in due course.
Earlier, Sherritt had to halt operations at its Fort Saskatchewan facility due to the depletion of feed inventory sourced from its Cuban Moa mine. Additionally, activities at the company’s Moa joint venture in Cuba were suspended earlier this year due to fuel shortages caused by the U.S. sanctions on Venezuela’s oil supply to the country.