Sherritt shuts down Fort Saskatchewan refinery amid Cuba mine halt
Company halts operations after losing feed inventory from Moa joint venture, now in talks with lenders over debt concerns.
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Sherritt International has shut down its refinery in Fort Saskatchewan, Alberta, after exhausting the feed inventory it receives from its Moa joint venture mining operation in Cuba.
The company says the shutdown will continue until mining and processing activities at Moa resume and the pipeline delivering the feed is rebuilt. Operations at the Moa joint venture were paused earlier this year as Cuba faced fuel shortages following the U.S. cut-off of Venezuelan oil in January.
The refinery closure comes as Sherritt enters talks with its lenders. The company warns it may be unable to repay all or a material portion of its debt if creditors accelerate payment, and says its ability to refinance or extend debt "remains uncertain" under current circumstances.
Sherritt has signed a non-binding agreement with Gillon Capital LLC, a family office linked to a former Trump administration adviser, that would allow Gillon to purchase a majority stake. Under a preliminary private placement deal, Gillon would hold a warrant permitting it to acquire enough shares for a 55 per cent ownership stake.