Glencore‑led Consortium Makes Rival Rescue Bid for Troubled Canadian Miner Sherritt
*(Bloomberg)* — A consortium led by Glencore Plc has tabled a competing rescue proposal for debt‑stricken Canadian nickel‑cobalt producer Sherritt International Corp., challenging a planned control investment from Gillon Capital linked to former US adviser Ray Washburne.
Submitted to Sherritt’s board on June 26, the non‑binding proposal will bring fresh capital to the miner. Upon full dilution, the consortium will hold a minimum 55% equity stake. Eligible existing shareholders may subscribe for new shares at C$0.12 apiece. The group comprises an unnamed US anchor investor, Trifon Natsis, Kyma Capital Ltd. and Glencore.
In May, Sherritt announced a private placement deal with Texas‑based family office Gillon Capital, which would secure it a 55% controlling interest, though the transaction price was undisclosed. The deal has drawn pushback from creditors and investors. Kyma, Sherritt’s largest shareholder, intends to convene a special general meeting to oust the chairman and one director over leadership concerns.
Sherritt operates the Moa nickel‑cobalt open‑pit mine in Cuba. Operations were suspended in February amid local energy crises and tightened US sanctions against Cuba. The consortium stated its offer is fully equity‑funded to sustain Sherritt’s nickel‑cobalt assets including the Fort Saskatchewan refinery. Sherritt warned last month its going‑concern status is at risk if lenders accelerate debt repayment on a declared default.
