Sherritt International Corp. has recently entered a preliminary agreement with Gillon Capital LLC, the family office of a former Trump administration adviser. The agreement allows Gillon to potentially acquire a majority stake in the Canadian mining company through a private placement deal. Under this deal, Gillon would hold a warrant enabling the purchase of enough shares to secure a 55 per cent ownership in Sherritt. If finalized, Sherritt anticipates that Gillon’s purchase price will be below the closing share price on May 15.
Sherritt has faced increased challenges due to U.S. sanctions impacting its operations in Cuba. The Trump administration’s actions have led to what Sherritt describes as a de facto fuel blockade, threats of military intervention, and expanded sanctions, prompting foreign entities to exit the country. Despite initial plans to dissolve its Cuban interests, including a partnership with Cuban state-owned Nickel Company S.A., Sherritt announced on Tuesday that it would not proceed with the dissolution following recent sanctions on the joint venture.
Gillon, linked to the Washburne family, has been involved in the agreement. Ray Washburne, who served as head of the U.S. development bank and as a member of the president’s intelligence advisory board during the Trump administration, is connected to Gillon. Sherritt has indicated that discussions with Gillon have not raised objections from the U.S. departments of State and Treasury, although any final agreement would necessitate their approval.