UNITED STATES CONSORTIUM CONFIRMS FULLY-FUNDED RECAPITALIZATION PROPOSAL FOR SHERRITT INTERNATIONAL AT C$0.12 PER SHARE -- WITH PARTICIPATION RIGHTS FOR ELIGIBLE EXISTING SHAREHOLDERS

A U.S. consortium comprising Kyma Capital, Trifon Natsis, and Glencore has confirmed a fully-funded, non-binding recapitalization proposal for Sherritt International Corporation at C$0.12 per share. The offer includes pro-rata participation rights for eligible existing shareholders to mitigate dilution and aims to unlock additional financing from noteholders. The group has secured written confirmation from the U.S. Department of State and Treasury that they do not object to the negotiations.

The transaction would place a U.S.-domiciled acquisition vehicle in control of at least 55% of Sherritt on a fully diluted basis. The consortium is urging Sherritt’s Board to engage immediately and compare the proposal against other alternatives, notably the earlier Gillon Capital term sheet. The C$0.12 price reflects the “unaffected” share price as of May 19, 2026, when trading was halted; the stock had recently traded at C$0.21 prior to the announcement.

Sherritt International Corporation’s recapitalization proposal, set at C$0.12 per share, represents a 43% discount to the Aug 7 closing price of C$0.21 and implies significant dilution even with partial participation rights. The deal confirms that noteholders, led by Kyma Capital, Sherritt’s largest economic stakeholder, are positioned to seize control while maintaining a low equity price. This structure undercuts expectations that the Gillon Capital process would yield a higher valuation, as the consortium’s demand for a competitive auction forces a resolution at a distressed level.

The proposal significantly raises the probability that existing equity will be severely impaired in any restructuring, putting the stock’s recent rally to C$0.21 on speculation at risk. The U.S. government’s no-objection stance provides regulatory approval for a deal that could lock in a recapitalization at a deeply deflated price.

The market previously reacted to going-concern warnings in July with a sell-off from C$0.21 to the C$0.11–C$0.14 range, followed by a bounce to C$0.21 just before this announcement. The new proposal reintroduces a hard pricing anchor at C$0.12, likely resetting valuation expectations sharply downward.

Sherritt International Corporation (S) is a Canadian mining company historically dependent on three primary assets. The Moa Joint Venture in Cuba, in which the company holds a 50% interest, comprises a large nickel and cobalt laterite mine and processing plant, with mixed sulphide feed shipped to Canada for refining. The company also owns the Fort Saskatchewan refinery in Alberta, which refines mixed sulphides into finished nickel and cobalt while producing fertiliser and sulphuric acid. Additionally, Sherritt held a 33% interest in Energas S.A., an independent power producer in Cuba that previously served as a stable cash generator via dividends. All of the company’s Cuban interests are currently suspended or in the process of being exited or restructured due to U.S. sanctions.