The Canadian mining company, Sherritt International Corporation, revealed on Wednesday that it has entered into a preliminary, non-binding agreement with Gillon Capital, LLC. This firm is the family office of Texas businessman Ray Washburne, who served in the Trump administration. The deal involves a private placement offering Gillon Capital control over 55% of Sherritt's common shares.
The proposed mechanism entails issuing a warrant exercisable within nine months from the agreement's closure, at a price expected to be below the closing price of C$0.11 recorded on May 15, 2026.
U.S. Government's Position on the Deal
One of the most critical elements of the announcement is the stance of the U.S. government: both the State Department and the Treasury Department have indicated that they do not oppose Gillon Capital's involvement in negotiations with Sherritt. Based on the information provided thus far, they do not view these talks as conflicting with U.S. law.
However, any final transaction will still require formal approval from both agencies and the Toronto Stock Exchange.
Ray Washburne's Strategic Role
Nominated by Donald Trump in June 2017, Washburne became the head of the Overseas Private Investment Corporation (OPIC), the U.S. federal development finance agency, and was confirmed by the Senate in July of that year. His expertise in regulatory matters and connections to the Trump administration are seen as vital for navigating the complex sanctions landscape that has pushed Sherritt to the brink of collapse.
Timeline of the Crisis
The crisis has escalated rapidly. It began with Trump's Executive Order on May 1, 2026, which intensified sanctions against Cuba and introduced secondary sanctions against foreign financial institutions dealing with blacklisted Cuban entities.
On May 6, Secretary of State Marco Rubio designated GAESA, its president, and Moa Nickel S.A.—Sherritt's joint venture with the Cuban state—under this order, accusing the mining company of exploiting Cuba's natural resources to benefit the regime at the Cuban people's expense.
Following this designation, Sherritt suspended its Cuban operations on May 7 and repatriated its expatriate employees.
Financial and Operational Challenges
On May 12, Sherritt's external auditor, Deloitte LLP, resigned effective immediately, and by May 15, the company announced the formal dissolution of its island interests.
Nonetheless, on May 19, Sherritt halted this dissolution after identifying what it described as a "value preservation opportunity," now revealed as the agreement with Gillon Capital.
Sherritt acknowledged in a statement that it faces significant operational, financial, and legal challenges, including its ability to meet debt covenants.
The financial context is equally dire: the Cuban government owes Sherritt at least $344 million, with $277 million directly tied to General Nickel Company S.A.
Adding urgency, foreign companies must cease operations with GAESA by June 5, 2026, to avoid secondary sanctions, heightening the pressure to finalize the deal with Gillon Capital.
Frequently Asked Questions About Sherritt's Cuban Operations Deal
What is the nature of the agreement between Sherritt and Gillon Capital?
Sherritt has signed a preliminary, non-binding agreement with Gillon Capital, which involves a private placement granting Gillon Capital control over 55% of Sherritt's common shares.
Why is Ray Washburne's involvement significant?
Ray Washburne's experience with U.S. regulatory frameworks and his connections to the Trump administration are crucial for navigating the sanctions that have significantly impacted Sherritt's operations in Cuba.
What challenges does Sherritt face in continuing its operations?
Sherritt is grappling with severe operational, financial, and legal hurdles, including managing its debt obligations and the Cuban government's substantial unpaid debts.