Sherritt International Corp. has recently entered into a preliminary private placement agreement with Gillon Capital LLC, a family office tied to a former Trump administration advisor. Under the non-binding deal, Gillon would acquire a majority ownership stake in Sherritt by holding a warrant enabling the purchase of enough shares to secure a 55% interest in the company. Should the transaction proceed, Sherritt anticipates that Gillon’s acquisition price will be below the company’s closing share value on May 15.
The Canadian mining firm has faced escalating challenges due to U.S. sanctions affecting its operations in Cuba. Since January, the Trump administration has imposed measures such as a de facto fuel blockade, threats of military intervention, and expanded sanctions, compelling foreign enterprises to exit the nation. Despite initial plans to dissolve its Cuban ventures, including a partnership with Nickel Company S.A., a Cuban state-owned nickel entity, Sherritt announced a reversal of this decision following U.S. sanctions on the joint venture.
Gillon Capital LLC represents the Washburne family, with Ray Washburne having served as the head of the U.S. development bank and a member of the president’s intelligence advisory board during the Trump administration. As part of the agreement with Gillon, Sherritt has verified that discussions with the company have not encountered objections from the U.S. Departments of State and Treasury, although any final agreement would necessitate their endorsement.