A consortium including Glencore (LSE: GLEN) has offered to recapitalize Sherritt International (TSX: S) and take control of the Canadian miner, giving Sherritt a second rescue option months into a crisis triggered by US sanctions on Cuba.
The group — which also includes London-based Kyma Capital, Brevan Howard co-founder Trifon Natsis, and an undisclosed US anchor investor — submitted the proposal to Sherritt’s board on June 26 but only disclosed it publicly Monday, saying it wants stakeholders to be able to “assess alternatives for themselves.”
Read: Sherritt Agrees to Hand Majority Stake to Trump-Linked Investor as Cuba Sanctions Bite
Sponsored · Cambria Gold Mines
Cuba’s fuel shortages, worsened after the US cut off the country’s access to Venezuelan oil in January, had already paused the Moa joint venture. US President Donald Trump then signed an executive order May 1 expanding sanctions to cover foreign actors in Cuba’s metals, mining and energy sectors.
Sherritt suspended its Cuban operations and repatriated staff May 7, and the Fort Saskatchewan refinery went idle once it burned through its remaining feedstock. It signed a non-binding rescue deal with Gillon Capital, a family office tied to former Trump adviser Ray Washburne, on May 20.
Gillon’s deal is a warrant — the right, not the obligation, to buy a 55% stake at a discount within nine months, without putting in cash now. The Glencore group’s offer puts equity in immediately, at C$0.12 a share, doesn’t depend on outside debt financing, and lets existing shareholders buy in on the same terms. Both structures would leave the winning group with at least 55% of the company.
Kyma Capital already holds more of Sherritt’s debt and equity than any other investor, the consortium said in its formal proposal, positioning it to help secure noteholder support other bidders can’t match. Glencore’s contribution would be technical, refining, marketing and critical-minerals expertise rather than capital.
Sherritt shares jumped 24% in Toronto trading Monday, valuing the company around $105 million. Washington has signaled it won’t block either side from negotiating — the State Department has told the consortium it doesn’t object to talks with Sherritt, though that falls well short of approving an actual deal. Sherritt reports second-quarter results Wednesday.
