A Potential Majority Stake In Sherritt
Sherritt International Corp. has signed a non-binding agreement with Gillon Capital LLC that could give the family office a majority stake in the Canadian mining company.
Under the preliminary private placement arrangement, Gillon would receive a warrant allowing it to purchase enough shares to hold a 55% stake in Sherritt. If completed, the deal would mark a major ownership shift for a company facing mounting pressure from U.S. sanctions tied to its Cuban operations.
Shares Would Be Bought At A Discount
Sherritt said that if the transaction proceeds, it expects Gillon to acquire the shares at a discount to the company’s closing share price on May 15.
The structure remains preliminary and non-binding, meaning the agreement does not guarantee a completed investment. Any final transaction would still require further approvals, including from U.S. authorities.
Sanctions Pressure Cuban Operations
Sherritt has been under increasing strain from U.S. sanctions affecting its business in Cuba. Since January, the Trump administration has enforced what Sherritt has described as a de facto fuel blockade, expanded sanctions and pressured foreign businesses to leave the country.
The pressure has directly affected the company’s Cuban interests, including its joint venture with Nickel Company S.A., a state-owned Cuban nickel company.
Company Reverses Cuban Exit Plan
On Tuesday, Sherritt said it would no longer proceed with plans to dissolve its Cuban interests. That decision reverses an earlier announcement made after the U.S. imposed sanctions on the joint venture.
The reversal suggests Sherritt is looking for an alternative path to preserve or restructure its exposure to Cuba rather than exiting entirely. The potential Gillon investment could provide financial and strategic flexibility as the company navigates the sanctions environment.
Gillon Links Add Political Attention
Gillon Capital is the family office of the Washburne family. Ray Washburne served in the Trump administration as head of the U.S. development bank from 2017 to 2019 and later sat on the president’s intelligence advisory board.
Those ties add political significance to the proposed deal, particularly because Sherritt’s operations are directly affected by U.S. sanctions policy toward Cuba.
U.S. Approval Still Required
Sherritt said it has confirmed that the U.S. departments of State and Treasury do not object to Gillon holding talks with the company. However, any final transaction would still require approval from those departments.
For investors, the agreement highlights both the risk and strategic value attached to Sherritt’s Cuban assets. A deal with Gillon could reshape the company’s ownership, but the outcome remains dependent on regulatory approval, sanctions policy and whether the non-binding agreement becomes a finalized investment.
