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US investor group taps Glencore in bid for Sherritt
['Northern Miner Staff']
MINING.COM
Credit: Sherritt InternationalA U.S. investor group that includes Glencore (LSE: GLEN) is offering to recapitalize Sherritt International (TSX: S) and acquire control of the beleaguered miner whose survival is in doubt following the suspension of its Cuban operations.
The consortium is touting its proposal as an alternative to a deal that Sherritt has been negotiating with Gillon Capital.
Sherritt shares jumped 24% to 15¢ apiece Monday morning in Toronto, valuing the company at about $105 million (US$75 million).
Any attempt by Sherritt to present debt investors “with a take-it-or-leave-it transaction after outcomes have effectively been predetermined” will be rejected, the bondholder group warned.
Glencore would provide relevant technical, refining, marketing and critical-minerals expertise, the group says.