Sherritt International Corp. has entered into a preliminary agreement with Gillon Capital LLC, the family office of a former Trump administration adviser, for the potential acquisition of a controlling interest in the company. The Canadian mining firm disclosed that under the proposed private placement arrangement, Gillon would secure a warrant enabling it to purchase sufficient shares to acquire a 55% ownership stake in Sherritt.
Should the transaction progress as planned, Sherritt anticipates that Gillon’s acquisition price will be below the closing share price recorded on May 15. The company has faced heightened challenges due to U.S. sanctions affecting its operations in Cuba. Since January, the Trump administration has imposed restrictions, including what Sherritt characterizes as a de facto fuel blockade, threats of military intervention, and an expansion of sanctions prompting foreign entities to exit Cuba.
In a recent development, Sherritt, headquartered in Toronto, announced its decision to retain its Cuban interests, including a partnership with Nickel Company S.A., a state-owned Cuban nickel enterprise. This decision marks a reversal of an earlier plan to discontinue its Cuban operations following U.S. sanctions on the joint venture.
Gillon represents the Washburne family, with Ray Washburne having served as the head of the U.S. development bank and as a member of the president’s intelligence advisory board during the Trump administration. Sherritt has confirmed that the U.S. Departments of State and Treasury have not raised objections to Gillon’s discussions with the company, although any potential agreement would necessitate their approval.