Sherritt and Pala Announce Board Renewal and Collaboration Agreement

Core Viewpoint - Sherritt International Corporation has entered into a collaboration agreement with Pala Assets Holdings Limited, which includes changes to the board and a commitment to support leadership transition and strategy execution [1][4]. Group 1: Agreement Details - Pala has withdrawn its requisition for a special meeting of shareholders and agreed to a standstill until January 1, 2027, during which it can increase its ownership to a maximum of 9.99% of Sherritt's common shares [2]. - Pala will have pre-emptive rights to maintain its ownership percentage as long as it holds at least 5% of the common shares and has agreed to vote in favor of the board slate at the 2026 annual meeting [2]. Group 2: Board Changes - The board of directors will consist of no more than eight members until January 1, 2027, with Shelley Brown stepping down and Brett Richards appointed to fill the vacancy [3]. - A CEO Search Committee will be reconstituted, chaired by Brian Imrie, with Brett Richards and Richard Moat as members, and Richards will serve on at least two standing committees [3]. Group 3: Leadership Insights - Brian Imrie, Chair of the Board, expressed satisfaction with the agreement, emphasizing stability during the leadership transition and the focus on executing strategy for shareholder benefit [4]. - Jan Weidner, CEO of Pala, highlighted the agreement as a constructive outcome that lays a strong foundation for value creation through the selection of a new CEO [4]. Group 4: Company Overview - Sherritt is a leader in hydrometallurgical processes for mining and refining nickel and cobalt, critical for the energy transition, and operates a significant refinery in Alberta, Canada [6]. - The Moa Joint Venture has an estimated mine life of approximately 25 years and has recently expanded to increase annual production by 20% of contained nickel and cobalt [7]. - Sherritt's Power division is the largest independent energy producer in Cuba, with an installed capacity of 506 MW, representing about 10% of the national capacity [8].