The Ambatovy nickel and cobalt mine in Madagascar
Canadian miner Sherritt International has entered into a deal with the Ambatovy joint venture (JV) financing lenders to defer the 15 June principal repayment.

The Ambatovy JV principle repayment has been deferred to 5 August 2016.

Sherritt International, who owns 40% of the Ambatovy nickel and cobalt mine in Madagascar, has also reached an agreement in principle on future principal payment deferrals.

Sherritt continues not to fund cash calls, while Sumitomo Corporation and Korea Resources Corporation have provided the necessary funding for the US$28 million (100% basis) interest repayment to the lenders on Wednesday.

By agreement amongst the partners, Sherritt is not considered to be a defaulting shareholder under the Ambatovy JV shareholders Agreement as a consequence of such non-funding to date.

Constructive discussions are ongoing; depending on the outcome of these discussions, Sherritt may or may not become a defaulting shareholder in the future.

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