A Toronto-based mining company has reached a preliminary agreement to transfer majority ownership to an investment firm with ties to a former adviser of U.S. President Donald Trump, as the miner works to address sanctions affecting its Cuban operations.
Sherritt International Corp. announced Wednesday that it has entered into a non-binding deal with Gillon Capital LLC, which would grant Gillon the opportunity to acquire a controlling 55% ownership position in the mining firm.
This development follows Sherritt’s Tuesday announcement that it was abandoning plans to dissolve its Cuban joint venture operations, a reversal of its previous week’s decision made in response to heightened U.S. sanctions against the island nation.
Under the proposed private placement arrangement, Gillon would receive a warrant enabling it to purchase sufficient shares for majority control. Sherritt indicated that if finalized, Gillon’s purchase price would be below the company’s May 15 closing share value.
The mining company, which has operated on the island for 32 years, halted direct involvement in its Moa joint venture in Cuba this month following increased U.S. pressure on the Caribbean nation.
Gillon serves as the family investment office for the Washburne family. Ray Washburne received a Trump administration appointment to lead the U.S. development bank known as Overseas Private Investment Corporation from 2017 to 2019. He subsequently joined the president’s intelligence advisory board. Washburne served as vice chairman of the Trump Victory Committee in 2016 and has been a significant Republican fundraiser.
Gillon did not provide an immediate response to requests for comment.
Regarding the agreement, Sherritt confirmed that U.S. State and Treasury Departments have indicated no objection to Gillon’s negotiations with the company, though any final deal would need their authorization.
“Sherritt has engaged constructively with the United States Department of State, which has confirmed that the Department of State and Department of Treasury 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,” Sherritt said in a statement.
