By Robb M. Stewart
Sherritt International is seeking a quick exit from its activities in Cuba as it looks to escape the threat of being targeted in the Trump administration's efforts to force regime change on the island.
The Canadian miner said Friday it plans to tell its venture partners in Cuba it will leverage provisions in their agreements to dissolve the partnerships, which effectively would sever its Cuban interests.
The company said it has informed Cuban authorities of its intentions. Since the process of dissolution could take at least several months and possibly several years, it said it will seek relief from the Alberta Court of King's Bench to facilitate accelerated dissolution to the extent possible. Sherritt is scheduled to appear before the court on Tuesday.
The move comes after Washington at the start of the month issued an executive order expanding sanctions against Cuba. The company hasn't been formally designated under the executive order, but has told investors that could occur at any time and might mean financial or other providers would be unable or unwilling to continue to support Sherritt's operation or other business activities.
Another Canadian court, the Ontario Superior Court of Justice, this week granted Sherritt an order allowing its board to continue to act with only two directors and for the company to continue operations without an external order until the end of September. It also was allowed to extend the time to call its annual meeting of shareholders to no later than Sept. 30.
Days after the U.S. expanded sanctions against Cuba, Sherritt suspended its joint-venture activities in the country and three directors including Chair Brian Imrie resigned. Earlier this week, the company said Deloitte had formally resigned as its external auditor and its chief financial officer, Yasmin Gabriel, stepped down.
Sherritt's interests in Cuba include Moa, an equal venture with General Nickel Co. of Cuba that mines, processes and refines nickel and cobalt. One of the venture's three business units owns and operates a nickel-and-cobalt refinery in the Western Canadian province of Saskatchewan.
Sherritt also owns a one-third interest in Energas, a Cuban venture established to process raw natural gas and generate electricity for sale to the Cuban national electrical grid, as well as oil and gas interests in two production-sharing contracts that are each in the exploration phase.
The Canadian company said it has determined that the only way to preserve its ability to do business is by invoking its dissolution rights under the Moa shareholders' agreement, which it wants to take place immediately so it can become the sole owner of the Canadian refinery. It also plans to surrender its interest in Energas and to seek a dissolution of the venture agreement, and also to surrender its interests in the production-sharing contracts and a drilling-services contract.
Sherritt said the value of the Moa venture business that owns the mine is expected to be higher than the value of the Canadian refinery business. As a result, Sherritt said, it expects the dissolution process to result in a fair-market-value equalization payment from General Nickel, in addition to the roughly 277 million Canadian dollars (about US$200 million) it is owed by General Nickel.
Sherritt's shares were up 9.1% on Friday at C$0.12, but have fallen more than 50% so far this month.
Write to Robb M. Stewart at robb.stewart@wsj.com
Corrections & Amplifications
This item was corrected on May 19, 2026. An earlier version misstated Saskatchewan as Saskatchewan.
(END) Dow Jones Newswires
05-15-26 1410ET
