A coalition of investors is stepping in to assist Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company. The group, 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.
The consortium has confirmed that the proposal has been under consideration by the board and is now being made public to allow the company’s stakeholders to evaluate their options. If approved, the investors plan to collaborate with Sherritt to strengthen its financial position and liquidity, while safeguarding and improving its Fort Saskatchewan, Alta., refinery and its nickel and cobalt processing capabilities in North America.
Sherritt had previously stated the need for a substantial infusion of new capital to support the resumption of operations at its Alberta refinery and Cuban joint venture, which were forced to close due to increased U.S. pressure on Cuba. The company has been engaged in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial standing and resuming normal activities when conditions allow.
The shutdown of the Fort Saskatchewan refinery was announced after the depletion of feed inventory from the Moa mine in Cuba, where operations were halted earlier this year due to fuel shortages resulting from U.S. restrictions on oil from Venezuela.
The move by the investor group comes amidst ongoing challenges faced by Sherritt International Corp., as it navigates the impacts of geopolitical dynamics and seeks to secure its operations for the future.