A group of investors is stepping in to assist Sherritt International Corp. following challenges posed by U.S. sanctions against 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 revealed that the proposal has been under consideration by the board since then. This announcement aims to provide an opportunity for the company’s stakeholders, shareholders, and employees to evaluate potential alternatives. If approved, the consortium plans to collaborate with Sherritt to enhance its financial structure and liquidity while safeguarding and improving its Fort Saskatchewan refinery in Alberta and its North American nickel and cobalt processing capacity.

Sherritt had previously disclosed its need for a substantial infusion of fresh capital to support the reopening of its Alberta refinery and Cuban joint venture, which had been halted due to heightened U.S. pressure on Cuba. The Toronto-based company has been engaged in discussions with its senior lenders and noteholders regarding a recapitalization initiative aimed at stabilizing its financial position and resuming operations under favorable conditions.

Earlier, Sherritt had announced the suspension of activities at its Fort Saskatchewan refinery after depleting the feed inventory supplied by its Moa mine in Cuba. Meanwhile, operations at the Moa joint venture in Cuba had been paused earlier this year due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January.