A group of investors is offering a possible rescue for Sherritt International Corp. following U.S. sanctions that have negatively impacted the Canadian mining firm.
A consortium comprised of an undisclosed U.S. lead investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd. has stated that they presented a non-binding recapitalization plan to the board of directors of Sherritt in late June.
The consortium mentions that this proposal has been under consideration by the board since that time, and they are making this announcement now to allow the company’s shareholders, employees, and other stakeholders to explore their options.
If the proposed agreement is approved, the consortium aims to collaborate with Sherritt to stabilize its capital framework and liquidity, while also enhancing and maintaining its refinery in Fort Saskatchewan, Alta., as well as its nickel and cobalt processing operations in North America.
Last month, Sherritt disclosed that it required a substantial infusion of new capital to restart its Alberta refinery and the Cuban joint venture, both of which were halted due to increased U.S. pressure on Cuba.
The Toronto-headquartered company indicated it was negotiating with its senior lenders and noteholders about a recapitalization plan aimed at stabilizing its financial position and resuming standard operations when conditions allow.
Previously, the company announced it would cease operations at its Fort Saskatchewan refinery after depleting the feedstock it receives from its Moa mine in Cuba.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were suspended as the country experienced fuel shortages following the U.S. cutoff of oil from Venezuela in January.
