S Sherritt International Corporation

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Sherritt International Corporation ("Sherritt" or "the Corporation") (TSX:S)
today announced it completed the divestiture of its Coal business.


"This transaction benefits Sherritt by rationalizing our asset base,
significantly enhancing liquidity and providing the opportunity to strengthen
our balance sheet," said David Pathe, Chief Executive Officer. "We are
continuing to execute on our strategy to build positive momentum and create
sustainable shareholder value." 


A significant portion of the cash proceeds will be used to strengthen the
Corporation's balance sheet through debt reduction. Sherritt has begun
debt-reduction discussions with advisors and debtholders. Proceeds from the
transaction that are not used for debt reduction will be used for general
corporate purposes, including the funding of the Ambatovy ramp-up. 


Sherritt sold the assets for total consideration of $946 million, including $793
million of cash received on closing. The operating assets, described as the
Prairie and Mountain Operations, were sold to Westmoreland Coal Company
("Westmoreland") for total consideration of $465 million, comprised of $312
million in cash at closing and the assumption of capital leases valued at $153
million. The Corporation's royalty portfolio and interest in coal development
assets were sold to a group led by Altius Minerals Corp., for cash consideration
of $481 million. Post-closing adjustments, for among other things, changes to
capital leases, working capital and coal inventories, are expected to be
finalized in second-quarter 2014. 


Sherritt had a $525 million revolving credit facility used primarily for letters
of credit and short-term funding for the Coal business. The $300 million drawn
on this facility was repaid from Sherritt's existing cash balances immediately
prior to closing of the Coal transaction. The facility was subsequently
terminated. 


Sherritt will continue to work with Westmoreland on the Obed Mountain Mine
remediation plan, and will continue to meet all financial obligations resulting
from the October 2013 Obed Mountain Mine containment pond breach.


About Sherritt 

Sherritt is a world leader in the mining and refining of nickel from lateritic
ores with operations in Canada, Cuba and Madagascar. The Corporation is the
largest independent energy producer in Cuba, with extensive oil and power
operations across the island. Sherritt licenses its proprietary technologies and
provides metallurgical services to commercial metals operations worldwide. The
Corporation's common shares are listed on the Toronto Stock Exchange under the
symbol "S". Further information on Sherritt can be found on the Corporation's
website: www.sherritt.com. 


Forward-Looking Statements 

This press release contains certain forward-looking statements. Forward-looking
statements can generally be identified by the use of statements that include
such words as "believe", "expect", "anticipate", "intend", "plan", "forecast",
"likely", "may", "will", "could", "should", "suspect", "outlook", "projected",
"continue" or other similar words or phrases. Forward-looking statements in this
document include, but are not limited to, anticipated timing of post-closing
adjustments, and certain corporate objectives, goals and plans. Forward-looking
statements are not based on historic facts, but rather on current expectations,
assumptions and projections about future events. They are based on information
available to management and/or assumptions management believes are reasonable.
Many factors could cause results to differ materially from the results discussed
in the forward-looking statements. Although the forward-looking statements are
based on what management believes to be reasonable assumptions, Sherritt cannot
assure investors that actual results will be consistent with such
forward-looking statements and such forward-looking statements should not be
unduly relied upon. All forward-looking statements in this press release are
made as of the date of this press release. Except as required by applicable
securities laws, Sherritt does not intend and does not assume any obligations to
update or revise the forward-looking statements. The Corporation's risk factors
are discussed in disclosure documents filed by Sherritt with Canadian securities
regulators. Reference should be made to the management discussion and analysis
in Sherritt's annual and interim financial statements and its annual information
form for the year ended December 31, 2013 and dated March 26, 2014, all of which
are available on SEDAR at www.sedar.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Investor Inquiries:
416-935-2451
Toll-Free: 1-800-704-6698
investor@sherritt.com


Media inquiries:
416-935-2421
Toll-free: 1-888-625-3448
communications@sherritt.com

Sherritt (TSX:S)
Historical Stock Chart
From Oct 2024 to Nov 2024

Sherritt (TSX:S)
Historical Stock Chart
From Nov 2023 to Nov 2024