Sherritt International Corporation has struck a 120-day exclusive negotiation agreement with Gillon Capital, LLC, the family office of Texas businessman Ray Washburne, a former official from Trump's initial administration. This deal could potentially shift control of the Canadian mining company, which operates in Cuba, through a private placement.
The exclusivity agreement follows a preliminary, non-binding agreement signed on May 20, 2026. Under this arrangement, Gillon Capital could acquire 55% of Sherritt's common shares. The exclusivity period is intended to provide both parties the necessary time to complete due diligence and finalize a definitive agreement.
Since the initial deal was announced, both companies have enlisted financial, legal, and other advisors to navigate the regulatory complexities associated with Sherritt's operations in Cuba and the U.S. sanctions landscape.
Ray Washburne was appointed by Trump in June 2017 to lead the United States Overseas Private Investment Corporation (OPIC), a position he held until 2019 after Senate confirmation. He also served on the President's Intelligence Advisory Board during that administration. His insights into regulatory frameworks and connections to the Trump environment are considered crucial for obtaining the necessary approvals.
Regulatory Hurdles and International Implications
The transaction still requires formal approval from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and the Toronto Stock Exchange. Sherritt has cautioned that there is no certainty the transaction will be completed or that it will occur promptly.
In May, the State Department and the Treasury Department indicated they had “no objection to Gillon Capital engaging in negotiations with the Corporation and, based on the information provided to date, do not view these negotiations as contrary to U.S. law.” However, this stance does not equate to a formal OFAC license.
Sherritt's crisis began on May 1, 2026, when President Donald Trump signed Executive Order 14404. This order expanded sanctions against Cuba and introduced secondary sanctions against foreign financial institutions dealing with blocked Cuban entities. On May 7, Secretary of State Marco Rubio designated GAESA and Moa Nickel S.A. — Sherritt's joint venture with the Cuban state — under this order, accusing the miner of exploiting Cuba's natural resources to benefit the regime at the Cuban people's expense.
Corporate Challenges and Strategic Decisions
Following this designation, Sherritt halted operations in Cuba and repatriated expatriate employees. On May 12, Deloitte LLP resigned as Sherritt's external auditor, and on May 15, the company announced the formal dissolution of its interests on the island. This decision was reversed four days later upon identifying a “potential value preservation opportunity” in the deal with Gillon Capital.
Concurrently, Sherritt is negotiating to relinquish control of its Cuban businesses while facing a trading suspension order issued on May 21, 2026, for failing to file its first-quarter financial statements. The company anticipates submitting these documents in the coming weeks.
Alongside the exclusivity agreement, Sherritt announced Tabrez Khan's appointment as an independent director, effective June 12, 2026, upon the recommendation of Kyma Capital Opportunities Master Fund Limited. Khan is a partner and co-founder of GENesis Capital Advisory, boasting over 20 years of experience in global transactions and previously held senior leadership roles at Ernst & Young for more than two decades.
The Cuban regime owes Sherritt at least $344 million, with $277 million directly tied to General Nickel Company S.A., adding another layer of uncertainty to the transaction's future.
Key Insights into Sherritt's Exclusive Negotiation Deal
What is the significance of the exclusivity agreement between Sherritt and Gillon Capital?
The agreement provides a 120-day period for both parties to conduct due diligence and negotiate a definitive agreement, potentially leading to Gillon Capital acquiring 55% of Sherritt's shares.
Who is Ray Washburne and what role does he play in this deal?
Ray Washburne is a Texas businessman and former Trump administration official. His regulatory expertise and connections are seen as vital for gaining necessary approvals for the transaction.
What challenges does Sherritt face in its operations in Cuba?
Sherritt faces challenges from U.S. sanctions, regulatory complications, and a significant debt owed by the Cuban regime, all of which complicate its operations and potential deals.