Sherritt International Corp. has entered into a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration advisor, to potentially acquire a majority ownership in the company. The Canadian mining firm disclosed that the proposed private placement arrangement would allow Gillon to secure a warrant enabling them to purchase sufficient shares to possess a 55 percent ownership stake in the company.
Should the agreement materialize, Sherritt anticipates that Gillon’s acquisition cost would be lower than the company’s closing stock price on May 15. Sherritt has faced escalating challenges due to U.S. sanctions on its operations in Cuba. Since January, the Trump administration has implemented measures, including what Sherritt has characterized as a de facto fuel blockade, threats of military intervention, and expanded sanctions, prompting foreign enterprises to exit the country.
In response to the situation, the Toronto-based company recently announced its decision to maintain its Cuban interests, including a partnership with Nickel Company S.A., a state-owned Cuban nickel entity. This reversal came after the U.S. imposed sanctions on the joint venture.
Gillon, representing the Washburne family, has initiated discussions with Sherritt. Ray Washburne, who led the U.S. development bank under President Trump from 2017 to 2019 and subsequently served on the president’s intelligence advisory board, has ties to the family office. Sherritt clarified that while the U.S. Departments of State and Treasury have not raised objections to the negotiations with Gillon, any final agreement would necessitate their approval.