Sherritt International Corporation (“Sherritt”) (TSX:S), a world leader in the mining and refining of nickel and cobalt from lateritic ores, announced that, in order to preserve liquidity and protect its balance sheet and consistent with previous disclosure, it will not fund its 12% share of a US$45 million cash call (100% basis) received from the Ambatovy Joint Venture (“Ambatovy JV”). The cash call was made due to the Ambatovy JV’s short term liquidity needs.
As a result of not funding the cash call, Sherritt is now a defaulting shareholder under the terms of the Ambatovy JV Shareholders Agreement, triggering a number of inter-related developments, including:
Further details outlining the impacts and potential impacts of becoming a defaulting shareholder can be found in Sherritt’s Annual Information Form filed on February 13, 2019, including without limitation in the “Risk Factors” section thereof.
About Sherritt
Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores with projects and operations in Canada, Cuba and Madagascar. The Corporation is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide. The Corporation’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
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