Key Takeaways:
Sherritt International received a Glencore-backed recapitalization proposal seeking a minimum 55 percent stake at 12 Canadian cents a share, as U.S. sanctions on Cuba strain the nickel producer's liquidity.
The consortium, which includes Kyma Capital, Glencore Ltd. and an unnamed U.S. anchor investor, said the proposal has been before Sherritt's board since late June and it is announcing the move so shareholders, employees and other stakeholders can assess alternatives for themselves.
The offer price of 12 Canadian cents per share (9 cents U.S.) represents no discount to Sherritt's unaffected share price as of May 19, the consortium said. Sherritt shares closed Friday at C$0.21, up 50 percent over the past 52 weeks but down about 2.3 percent since the start of 2026. The Toronto-based company is currently in exclusive talks to sell a controlling stake to Gillon Capital, a private family office associated with Republican financier Ray Washburne.
Sherritt shut down its Fort Saskatchewan, Alberta, refinery in June after running out of feedstock from its Moa mine in Cuba, which paused operations earlier this year as the country faced fuel shortages after the U.S. cut off access to Venezuelan oil in January. The company requires significant new capital to fund the restart of both operations, especially as sulphur costs have risen to historic highs. The consortium has the backing of Sherritt's key debt holders and written confirmation of non-objection from the U.S. State Department, and is pressuring the board to end its four-month exclusivity agreement with Gillon Capital before mounting operating losses deplete remaining liquidity.
Sherritt confirmed receipt of the unsolicited, non-binding proposal Monday, cautioning stakeholders that it is conditional and not currently executable. The company said it will address all proposals from current or potential stakeholders.
The proposal comes as Sherritt navigates a severe liquidity crisis. The company said last month it needs a significant amount of new capital to fund the restart of its Alberta refinery and Cuban joint venture, both shut down in the face of ramped-up U.S. pressure on the Caribbean country. Sherritt was in talks with its senior lenders and noteholders regarding a recapitalization intended to stabilize its balance sheet and restore normal operations when circumstances permit.
The Moa joint venture in Cuba, which supplies nickel and cobalt feedstock to the Fort Saskatchewan refinery, was paused earlier this year as the country faced fuel shortages since the U.S. cut off access to oil from Venezuela in January. Rising input costs, particularly for sulphur, have further complicated efforts to restart operations. The refinery's shutdown marked the first time in its operating history that the facility was idled for feedstock reasons.
If the proposed deal is accepted, the consortium said it intends to work with Sherritt to stabilize its capital structure and liquidity while preserving and enhancing the Fort Saskatchewan refinery and North American nickel and cobalt processing capability. The facility is one of only a few nickel and cobalt refineries in North America, making its preservation strategically important for the region's battery supply chain.
Glencore's involvement is notable given its position as one of the world's largest commodity traders and its existing footprint in the nickel and cobalt supply chain. The company has been expanding its battery metals portfolio, and the Fort Saskatchewan refinery's North American processing capability would complement that strategy.
The competing proposals present Sherritt's board with a choice: accept the Glencore-backed consortium's offer, which has debt-holder support and State Department non-objection, or continue with Gillon Capital's exclusivity agreement. The consortium argues that mounting operating losses could deplete remaining liquidity before a deal is finalized, making the comparison urgent. The outcome will determine not only Sherritt's future but also the fate of critical nickel and cobalt processing capacity in North America as the region seeks to build out domestic battery supply chains.
This article is for informational purposes only and does not constitute investment advice.
