Canadian miner Sherritt International has signed a preliminary deal to hand a controlling stake to a family office tied to a former Trump administration official — the latest turn in a nearly three-week crisis triggered by escalating US sanctions on Cuba.
Sherritt announced Wednesday it had entered a non-binding agreement with Gillon Capital LLC, under which Gillon would hold a warrant convertible into a 55% ownership position through a private placement, priced at a discount to Sherritt’s May 15 closing share price.
Gillon Capital is the family office of Ray Washburne, a Texas-based real estate executive and major Republican fundraiser who served as president and CEO of the Overseas Private Investment Corporation from 2017 to 2019 under President Donald Trump, then sat on the president’s intelligence advisory board.
Sherritt confirmed that the State and Treasury Departments “do not object to Gillon Capital’s engagement in negotiations with the Corporation and, based on the information provided to date, do not consider such negotiations to be contrary to U.S. law,” though any final transaction still requires formal approval from both agencies and the Toronto Stock Exchange.
Trump signed an executive order on May 1 expanding Cuba sanctions to target foreign actors in the island’s metals, mining, and energy sectors. Sherritt suspended operations and repatriated expatriate employees on May 7, the same day three board members resigned, and Secretary of State Marco Rubio designated GAESA and Moa Nickel S.A. — the Sherritt-Cuba joint venture — under the order, threatening Sherritt’s access to the international banking system.
On May 15, Sherritt announced it would seek to dissolve its Moa joint venture with Cuba’s General Nickel Company S.A. — only to reverse that decision four days later, citing a “potential value-preserving opportunity” it was evaluating.
That opportunity was Gillon Capital.
Sherritt has operated in Cuba for 32 years through the Moa joint venture, a 50/50 partnership with General Nickel that mines lateritic nickel ore in eastern Cuba and ships mixed sulphides to a refinery in Fort Saskatchewan, Alberta. The Cuban government owes Sherritt at least $344 million, including $277 million tied directly to General Nickel.
Under the joint venture agreement, if sanctions render Sherritt unable to “reasonably carry on a material business activity,” dissolution would see the mine revert to full Cuban ownership while Sherritt retains sole ownership of the Fort Saskatchewan refinery — meaning the company would walk away from Cuba empty-handed on the asset it is owed the most. Foreign companies face a June 5 deadline to cease operations with GAESA, Cuba’s military-linked conglomerate, or face secondary sanctions.
Washburne’s ties to the Trump administration — and the explicit non-objection from State and Treasury — give Sherritt a sanctions-navigable path that outright dissolution would not.
Sherritt’s stock jumped 9% in New York trading after the announcement.
The deal remains non-binding, requires regulatory sign-off, and the June 5 deadline leaves little room to maneuver.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
