A cluster of investors is extending a lifeline to Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba. The group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan 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 disclosed to allow the company’s stakeholders, shareholders, and employees to evaluate potential options. If approved, the investors intend to collaborate with Sherritt to enhance its financial structure and liquidity, with a focus on maintaining and improving its refinery in Fort Saskatchewan, Alberta, as well as its nickel and cobalt processing capabilities in North America.
Previously, Sherritt had announced the need for substantial new capital to support the reactivation of its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba. The company had initiated discussions with its primary lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming normal operations when conditions allow.
Sherritt’s operations at the Moa joint venture in Cuba had been temporarily suspended earlier in the year due to fuel shortages in the country resulting from the U.S. decision to block oil access from Venezuela in January. This move had forced Sherritt to cease operations at its Fort Saskatchewan refinery as it depleted its feed inventory from the Moa mine in Cuba.
