A group of investors is stepping in to assist Sherritt International Corp. following the challenges posed by U.S. sanctions on Cuba. The consortium, 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 since then. They have decided to make this announcement now to allow the company’s shareholders, employees, and other stakeholders to evaluate the available options. If approved, the consortium plans to collaborate with Sherritt to strengthen its financial structure and liquidity, while also safeguarding and enhancing its Fort Saskatchewan, Alta., refinery and North American nickel and cobalt processing capabilities.

Sherritt had previously disclosed the need for a substantial infusion of new capital to support the restart of its Alberta refinery and Cuban joint venture, which were forced to cease operations due to increased U.S. pressure on Cuba. The company is engaged in discussions with its senior lenders and noteholders to explore a recapitalization strategy aimed at stabilizing its financial position and resuming normal activities when conditions allow.

Earlier, Sherritt had announced the suspension of operations at its Fort Saskatchewan refinery after depleting its feed inventory from the Moa mine in Cuba. Operations at the Moa joint venture in Cuba had been halted earlier in the year due to fuel shortages in the country following the U.S. decision to restrict access to Venezuelan oil.

These recent developments underscore the challenges faced by Sherritt International Corp. as it navigates the impact of external factors on its operations and financial stability.