Sherritt agrees to sell stake in Cuba mining business to company linked to former Trump adviser

TORONTO (AP) — Canadian miner Sherritt International Corp. has signed a non-binding agreement with Gillon Capital LLC, a family office linked to a former adviser of U.S. President Donald Trump, that would allow Gillon to buy a majority stake in the company as it navigates sanctions on its operations in Cuba.

The company’s announcement Wednesday comes a day after the Toronto-based Sherritt said it is no longer pursuing a plan to dissolve its Cuban joint venture, reversing a decision it announced last week amid expanded U.S. sanctions on the country.

The preliminary private placement deal would see Gillon hold a warrant that would allow it to buy enough shares to give it a 55% 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.

Sherritt, which has a 32-year presence on the island, suspended direct participation in its Moa joint venture in Cuba earlier this month after the U.S. ramped up pressure on the Caribbean country.

Gillon is the family office for the Washburne family. Ray Washburne was appointed by Trump as head of the U.S. development bank known as Overseas Private Investment Corporation from 2017 to 2019. He later served as a member of the president’s intelligence advisory board. He was vice chairman of the Trump Victory Committee in 2016 and has been a major Republican fundraiser.

Gillon did not immediately respond to a request for comment.

In connection with the agreement, Sherritt says it has confirmed that the U.S. State and Treasury Departments do not object to Gillon’s talks with the company, but that any deal would require their approval.

“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.