A consortium 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., aiming to assist the Canadian mining company amid challenges posed by U.S. sanctions on Cuba. This proposal, submitted to Sherritt’s board of directors in late June, is now being made public to allow stakeholders to evaluate potential alternatives.
If approved, the consortium plans to collaborate with Sherritt in restructuring its finances and enhancing liquidity, with a focus on safeguarding and improving its operations at the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing facilities in North America. Sherritt recently revealed the necessity for a substantial infusion of new funds to support the restart of its Alberta refinery and Cuban joint venture, which had been closed due to heightened U.S. pressure on Cuba.
The Toronto-headquartered company has been in discussions with its primary lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming regular activities when conditions allow. Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery following the depletion of feed supplies sourced from its Moa mine in Cuba. Operations at the company’s Moa joint venture in Cuba were halted earlier this year due to fuel shortages in the country resulting from U.S. restrictions on Venezuelan oil imports.
