Sherritt closes C$132 million unit offering

On January 25, 2018, Sherritt International Corporation ("Sherritt") closed its previously announced unit offering including the full exercise of an over-allotment option granted to its agents. A total of 94,464,400 units of the company were sold at a price of C$1.40 per unit for gross proceeds of approximately C$132 million. Each unit consists of one Sherritt common share and one-half of one common share purchase warrant linked to the price of cobalt, exercisable at a price of C$1.95 for a period of 36 months.

Paradigm Capital, Eight Capital and National Bank Financial acted as co-lead agents and joint-bookrunners on behalf of a syndicate that included TD Securities.

The net proceeds of the offering will be used to reduce Sherritt's outstanding indebtedness, for general corporate purposes and to fund future growth initiatives. Sherritt intends to use the proceeds of the offering and its existing cash balance to repurchase a portion of one or more of each of its senior unsecured debentures for a targeted aggregate principal amount of up to C$75 million. The debentures will be repurchased under the terms of a modified Dutch auction tender offer.

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.

Further information can be found on Sherritt's website.