Sherritt International Corp. has recently entered into a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration advisor. The agreement outlines a potential acquisition by Gillon of a controlling interest in the company.
According to the Canadian mining firm, the preliminary terms of the private placement arrangement entail Gillon acquiring a warrant that would enable it to purchase sufficient shares to hold a 55% ownership stake in Sherritt. If finalized, Sherritt anticipates that Gillon’s acquisition price will be below the closing share price recorded on May 15.
Sherritt has faced escalating challenges due to U.S. sanctions impacting its operations in Cuba. The company has reported constraints resulting from a de facto fuel blockade, military threats, and broader sanctions by the Trump administration, leading to the exit of foreign enterprises from the country.
In response to these developments, Sherritt, headquartered in Toronto, has decided to retain its Cuban interests, including a partnership with Nickel Company S.A., a Cuban state-owned nickel entity. This decision marks a reversal of a prior announcement to dissolve these ties following U.S. sanctions targeting the joint venture.
Gillon, associated with the Washburne family, has engaged in discussions with Sherritt under this agreement. Ray Washburne, who previously held roles in the Trump administration, including leading the U.S. development bank and serving on the president’s intelligence advisory board, has connections to Gillon.
Sherritt has disclosed that the U.S. Departments of State and Treasury have not raised objections to Gillon’s negotiations with the company. However, any formal agreement resulting from these discussions would necessitate approval from the respective government departments.