Mining Press Roundup: Sherritt Suspends Cuba Operations as U.S. Sanctions Bite

Sherritt International suspended its direct participation in joint venture activities in Cuba effective immediately , sending shares of the Canadian nickel-cobalt producer down 30% on Thursday in the most dramatic geopolitical disruption to hit the mining sector this week. The move follows an Executive Order issued by the U.S. administration on May 1, 2026 expanding sanctions against Cuba , creating what the company described as conditions that "materially alter the Corporation's ability to operate in the ordinary course" despite not being formally designated under the sanctions regime.

Sherritt International: Cuba Sanctions Force Immediate Withdrawal

Three members of Sherritt's Board of Directors—Brian Imrie, Richard Moat and Brett Richards—resigned effective immediately as the Toronto-based miner scrambled to respond to the sanctions threat. The company is taking steps to repatriate its expatriate employees in Cuba and has requested that partners repatriate their expatriate personnel in Canada .

Sherritt's refinery in Fort Saskatchewan, Alberta continues to produce finished nickel and cobalt for sale, with inventory of feed expected to last until approximately mid-June . The Alberta facility represents the only significant cobalt refinery and one of just three nickel refineries in North America , underscoring the strategic importance of the operation for critical minerals supply chains.

The decision deprives the Cuban regime of its largest foreign mining partner and between 10% and 15% of its independent electricity generation capacity , according to reports. The Executive Order focuses on defense, mining, finance and security sectors , creating secondary sanctions risk that could prevent financial institutions from supporting Sherritt's operations.

Lundin Gold: Bonanza Intercepts at Fruta del Norte

Lundin Gold reported multiple bonanza intercepts from its Fruta del Norte project in Ecuador, including two of the highest grade-thickness holes ever drilled at the property . Highlight hole FDN-C25-374 in the Fruta del Norte South zone cut 7.5 metres grading 667.78 grams gold per tonne and 55 grams silver from 19 metres downhole , while hole FDN-C26-380 cut about 8 metres grading 523.01 grams gold from about 23 metres depth .

Lundin shares jumped 8.1% to $94.32 Wednesday morning in Toronto, valuing the company at about $23 billion (US$17 billion) . The Vancouver-based producer is working to maintain or extend Fruta del Norte's projected 12-year mine life by expanding resources, detailing new discoveries and converting inferred resources to indicated .

Lundin is targeting annual production of between 475,000 and 525,000 oz. of gold in 2026, 2027 and 2028 at average head grades of 8.3 grams gold . A decision on whether to develop Fruta del Norte South is expected in this year's first half , when the company updates its life-of-mine plan.

Westhaven Gold: High-Grade Drilling Advances Shovelnose PFS

Westhaven Gold's highlight hole SNR26-070 cut 54 metres grading 8.99 grams gold per tonne and 55 grams silver from 152 metres depth, including 23 metres at 17 grams gold and 111 grams silver at the Shovelnose project in south-central British Columbia. Westhaven shares gained more than 5% to 29¢ apiece on Thursday morning in Toronto, valuing the company at $75.2 million (US$55.1 million) .

The results come as Westhaven initiates a Prefeasibility Study evaluating potential mine development at the South Zone deposit , backed by a strategic earn-in agreement with Dundee Corporation that includes a minimum CDN$30,000,000 commitment, inclusive of a fully funded 50,000m drill program at Shovelnose .

An updated PEA released in 2025 gave Shovelnose a post-tax net present value (at a 6% discount) of $454 million and an after-tax internal rate of return of 43.2%, with a payback period pegged at 2.1 years, assuming a gold price of US$2,400 per ounce —well below current spot prices trading above $4,600 per ounce according to market data.

Regis-Vault Merger: Creating Australia's Third-Largest Gold Producer

Regis Resources has agreed to merge with Vault Minerals in an all-share deal valued at about A$10.7 billion (US$7.7 billion), creating a new senior gold producer expected to turn out more than 700,000 oz. annually from assets across Australia and Canada . Regis will offer 0.6947 of its shares for each Vault share, implying a value of about A$5.15 billion and an 11% premium to Vault's last close .

Upon completion, Regis shareholders will own about 51% of the combined company and Vault investors the remaining 49%, with both boards unanimously recommending the transaction . Regis CEO Jim Beyer said the merger "creates Australia's third largest primary ASX-listed gold producer, which demands global recognition" .

The merged group is expected to generate about A$1.7 billion in annualized free cash flow and benefit from more than A$500 million in corporate tax synergies, while maintaining a debt-free balance sheet with roughly A$1.9 billion in cash and bullion . The deal reflects a broader push towards consolidation in the gold sector, as mid-tier producers seek greater scale, improved liquidity and access to lower-cost capital .

Ekati Diamond Mine: Creditor Protection Amid Industry Decline

The owner of the troubled Ekati Diamond Mine in the Northwest Territories filed for insolvency protection, with Australia-based Burgundy Diamond Mines' Canadian subsidiary, Arctic Canadian Diamond Co. Ltd., granted protection under the Company Creditors Arrangement Act . The company cited "the ongoing adverse impact of U.S. tariffs on the natural diamond industry, sustained challenging demand conditions being experienced by all natural rough diamond producers globally and increasing costs, including as a result of recent significant increases in fuel prices due to the conflict in the Middle East" .

Ekati had about 700 employees in 2024, of which about 28 per cent were northern residents and about 60 per cent of those were Indigenous, but that workforce had collapsed to about 340 employed by March 31 . The company received a $175-million worth of loans from the federal government to ensure operations remain ongoing and jobs were protected , though questions remain about how those funds have been deployed.

The growing popularity of lab-grown diamonds has caused prices for raw diamonds to plummet in recent years, while U.S. tariffs on India, where most raw diamonds are cut and polished, have also hurt miners . The Northwest Territories' diamond industry is in its waning days, with the Diavik mine owned by Rio Tinto marking its last day of production in March, and the Gahcho Kué owned by De Beers and Mountain Province preparing for its end-of-life in the coming years .

Power Metallic: High-Grade Copper Hits at Nisk

Power Metallic Mines hit two more thick, shallow polymetallic intervals at the Nisk project's Lion zone, with hole PML-26-094 cutting 17.45 metres grading 4.43% copper, 7.07 grams palladium per tonne, 3.11 grams platinum, 0.53 gram gold and 23.76 grams silver per tonne, plus 0.23% nickel, from 134.6 metres downhole .

Both holes are about 100 metres below surface, extending the core of the Quebec discovery across about 200 metres of strike as the company works toward a third-quarter mineral resource . SGS test work released in January reported recoveries of 98.9% copper, 93.9% palladium, 96.8% platinum, 85% gold and 88.9% silver from representative Lion samples , providing strong metallurgical support for the project's economics.

The infrastructure case is unusually strong for a James Bay junior: the project sits beside Route du Nord and across the road from a Hydro-Québec substation . The company is funded for a 100,000-metre drill program this year and has $31 million (US$22.7 million) in cash as of last quarter, backed by industry notables such as Gina Rinehart, Robert Friedland and Rob McEwen .

What It Means

Today's announcements underscore three major themes reshaping the mining sector: geopolitical risk is forcing operational decisions in real time, high-grade gold discoveries continue to command premium valuations in a $4,600+ gold environment, and consolidation among mid-tier producers reflects the capital intensity required to compete at scale.

Sherritt's Cuba exit demonstrates how quickly sanctions can disrupt even long-established mining operations, particularly in jurisdictions with limited alternatives. The company's Fort Saskatchewan refinery remains critical for North American cobalt supply, but the loss of Cuban feedstock creates immediate supply chain questions for the battery metals sector.

Meanwhile, gold equities are benefiting from both operational success and macro tailwinds. According to market data, gold traded at $4,698 per ounce on May 7, up 2.3% on the day, as reports that the U.S. and Iran may be nearing a peace deal cooled fears of higher inflation and an extended period of elevated interest rates, with spot gold hitting its highest level since April 27 . The Regis-Vault merger and strong drill results from Lundin and Westhaven suggest investors are rewarding companies that can deliver both growth and scale in a high-price environment.

The Ekati filing, by contrast, highlights the structural challenges facing the diamond sector as lab-grown alternatives erode pricing power and geopolitical factors—from U.S. tariffs to Middle East energy costs—squeeze margins. The Northwest Territories' transition away from diamonds toward critical minerals may accelerate as a result.

This roundup covers press releases published on May 7, 2026. Company announcements are sourced from mining industry wire services. For corrections or updates, contact contact@stakeandpaper.com.