Sherritt International Corp. has entered into a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration adviser, to potentially acquire a controlling interest in the company. According to the Canadian mining firm, the initial private placement arrangement would grant Gillon a warrant enabling it to purchase sufficient shares to secure a 55% ownership stake in Sherritt. Should the transaction proceed, Sherritt anticipates that Gillon’s acquisition price will be lower than the closing share price on May 15.
Facing challenges due to U.S. sanctions affecting its operations in Cuba, Sherritt has been under escalating pressure. Since January, the Trump administration has enforced measures, including what Sherritt characterizes as a de facto fuel blockade, threats of military intervention, and expanded sanctions, prompting international businesses to exit the country. In response to this situation, the Toronto-headquartered company announced on Tuesday that it would not move forward with its plans to dissolve its Cuban assets, which include a partnership with Nickel Company S.A., a state-owned Cuban nickel enterprise. This decision marks a reversal of an earlier announcement made following U.S. sanctions against the joint venture.
Gillon, which represents the Washburne family, has ties to Ray Washburne, who served as the head of the U.S. development bank from 2017 to 2019 under President Donald Trump’s administration and later as a member of the president’s intelligence advisory board. Sherritt has disclosed that the U.S. departments of State and Treasury have no objections to Gillon’s discussions with the company, but any final agreement would necessitate their approval.