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Sherritt International Corp. has signed a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration adviser, that would allow Gillon to buy a majority stake in the company.
The Canadian mining company says the preliminary private placement deal would see Gillon hold a warrant that allowing it to buy enough shares to give it a 55 per cent stake in the company.
If the deal goes ahead, Sherritt says it expects the price paid by Gillon will be at a discount to its closing share price on May 15.
The company has come under mounting pressure from U.S. sanctions on its Cuba operations. Since January, the Trump administration has enforced what Sherritt has described as a de facto fuel blockade, threatened military action and expanded sanctions, forcing foreign businesses to leave the country.
On Tuesday, the Toronto-based company said it would not proceed with plans to dissolve its Cuban interests, including a joint venture with Nickel Company S.A., a state-owned Cuban nickel company.
The move reversed a decision announced earlier this month after the U.S. imposed sanctions on the joint venture.
Gillon is the family office for the Washburne family. Ray Washburne was appointed by U.S. President Donald Trump as head of the U.S. development bank from 2017 to 2019. He later served as a member of the president’s intelligence advisory board.
In connection with the agreement, Sherritt says it has confirmed that the U.S. departments of State and Treasury do not object to Gillon’s talks with the company, but that any deal would require their approval.
