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Canada's Sherritt will recover $260 million in outstanding debt after an agreement with the Cuban government

Canada’s Sherritt will recover $260 million in outstanding debt after an agreement with the Cuban government

According to the site online miningThe Canadian company Sherritt Internacional has agreed with the Cuban government to liquidate (within five years and as of January 1, 2023) Debt totaling 362 million Canadian dollars (260 million US dollars)).

The agreement, known as a “cobalt swap,” will allow the Moa joint venture in Cuba to prioritize dividend payments in the form of ready-made cobalt for each partner. Each partner’s share of this cobalt earnings will be redirected to Sherritt, as debt repayment.

In a press release reviewing the aforementioned portal, Leon Bendel, President and CEO of Sheritt Corporation stated:

“We have been able to negotiate agreements that set an effective timetable for Full repayment of the debts owed by our Cuban partners Within five years, we believe this puts an end to historical uncertainty about repayment.”

He added that in addition to Sharett’s share of the profits, “this is expected to provide significant cash flow to meet our strategic debt reduction priorities and significantly expand our business.”

As the text explains, the terms of the cobalt swap state that General Nickel (GNC), Sherritt’s partner in Moa’s joint venture, assumes “certain obligations owed to Sherritt on Union Cubapetroleo (CUPET) and Energas SA for the full repayment of amounts due within the five-year period.” .

It was also announced that “in addition to the cobalt exchange, a payment agreement with Cuban partner Energas has been extended to finance the operating and maintenance costs of Energas.” This includes coverage of future payments that will be due to ShareTit.

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in this meaning, Sharett expects to continue receiving approximately $4.2 million (CAD 5.6 million) per monththrough a payment agreement with the joint venture Moa and Energas.

Moa will convert foreign currency into Cuban peso through Energas to support the company’s domestic operating activities in Cuba.

From Sherit they consider thatA cobalt swap provides “a mutually beneficial agreement to pay bills due within a reasonable time without relying on Cuba’s access to foreign currency.