Sherritt International Corp. has recently entered into a non-binding agreement with Gillon Capital LLC, the family office of a former advisor to the Trump administration. The agreement entails Gillon potentially acquiring a majority stake in the Canadian mining company through a preliminary private placement deal. Under this arrangement, Gillon would possess a warrant enabling the purchase of enough shares to secure a 55 percent ownership in Sherritt.
Should the agreement materialize, Sherritt anticipates that Gillon’s acquisition price would be below the company’s closing share price on May 15. Sherritt has faced escalating challenges due to U.S. sanctions affecting its operations in Cuba. These sanctions, enforced by the Trump administration since January, have included a de facto fuel blockade, threats of military intervention, and expanded sanctions, prompting foreign entities to exit the Cuban market.
On a recent announcement, Sherritt, headquartered in Toronto, disclosed its decision to retain its Cuban interests, including a partnership with Nickel Company S.A., a state-owned Cuban nickel enterprise. This reversal follows earlier plans to dissolve these Cuban engagements, which were impacted by U.S. sanctions targeting the joint venture.
Gillon, linked to the Washburne family, has ties to Ray Washburne, who held various roles in the Trump administration. Washburne served as the head of the U.S. development bank from 2017 to 2019 and later as a member of the president’s intelligence advisory board. In light of the agreement, Sherritt has indicated that discussions with Gillon have received non-objection from the U.S. Departments of State and Treasury, although any final deal would necessitate their approval.