Sherritt International has received a recapitalization proposal from a Glencore-backed consortium aiming to take a 55% controlling stake in the embattled mining company.
The public offer by the United States Consortium, which is made up of a prominent U.S. anchor investor, mining company Glencore, activist firm Kyma Capital and investor Trifon Natsis, would give the group a minimum 55% controlling stake in Sherritt.
The Toronto-based nickel and cobalt producer is currently in exclusive talks to sell a controlling stake to Gillon Capital, a private family office associated with Republican financier Ray Washburne.
The offer price by the consortium, which was proposed on June 26 and disclosed Monday, is for 12 Canadian cents a share (9 cents), which the consortium said is a market-reflective price with no discount to Sherritt's unaffected share price as of May 19.
Sherritt's shares have been slightly under pressure so far in 2026, falling about 2.3% since the beginning of the year, and closing Friday at C$0.21. The stock is up 50% over the last 52 weeks.
The company has been struggling with a severe liquidity crisis, facing rising input costs that stall efforts to restart its Alberta refinery and Cuban joint venture operations.
The deal has the backing of Sherritt's key debt holders and written confirmation of non-objection from the U.S. State Department. At the same time, the consortium is pressuring Sherritt's board to end its four-month exclusivity agreement with Gillon Capital and compare the proposals before mounting operating losses deplete remaining liquidity.
The company requires significant amounts of new capital to fund the restart of its operations in Canada and in Cuba, especially since the costs of key inputs, such as sulphur, have risen to historic highs due to global supply restrictions.
Sherritt in June moved to shut down operations at its refinery in Fort Saskatchewan, Alberta, as it runs out of feedstock at a mining and processing operation in Cuba.
Comments