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Sherritt International Corporation formalized an exclusivity agreement for 120 days this Wednesday with Gillon Capital, LLC, the family office of Texas businessman Ray Washburne, a former official from the first Trump administration, to exclusively negotiate a private placement that could change the control of the Canadian mining company with operations in Cuba.
The exclusivity agreement announced by Sherritt is the next step following the non-binding preliminary agreement signed on May 20, 2026, under which Gillon Capital could acquire 55% of the common shares of the company. The exclusivity period aims to give both parties time to complete their due diligence reviews and negotiate a definitive agreement.
Since the announcement of that initial agreement, the two companies have hired financial, legal, and other advisors to navigate the regulatory complexities arising from Sherritt's operations in Cuba and the U.S. sanctions environment.
Washburne was nominated by Trump in June 2017 to head the U.S. Overseas Private Investment Corporation (OPIC), a position he held until 2019 after being confirmed by the Senate. He also served on the President's Intelligence Advisory Board during that same administration. His understanding of the regulatory apparatus and his connections within the Trump environment are seen as crucial for obtaining the necessary approvals.
The operation still requires formal approval from the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury, as well as the endorsement from the Toronto Stock Exchange. Sherritt warned that "there is no guarantee that this transaction will be finalized or that it will be completed in a timely manner."
The State Department and the Treasury Department had already indicated in May that "they do not oppose Gillon Capital's commitment 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," although this position does not equate to a formal OFAC license.
The Sherritt crisis was triggered on May 1, 2026, when President Donald Trump signed Executive Order 14404, which expanded sanctions against Cuba and introduced secondary sanctions against foreign financial institutions that engage 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 that order, accusing the mining company of having "exploited Cuba's natural resources to benefit the regime at the expense of the Cuban people."
After that designation, Sherritt suspended operations in Cuba and repatriated its expatriate employees. On May 12, its external auditor, Deloitte LLP, resigned, and on May 15, the company announced the formal dissolution of its interests on the island, a decision it reversed four days later upon identifying a "potential value preservation opportunity" in the agreement with Gillon Capital.
At the same time, Sherritt is negotiating to relinquish control of its businesses in Cuba while facing a suspension of its trading order issued on May 21, 2026, for failing to present its financial statements for the first quarter. The company has indicated that it will present those documents in the coming weeks.
Alongside the exclusivity agreement, Sherritt announced the appointment of Tabrez Khan 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, with over 20 years of experience in global transactions, and previously spent more than two decades at Ernst & Young in senior leadership roles.
The Cuban regime has accumulated a debt of at least 344 million dollars with Sherritt, of which 277 million directly pertain to General Nickel Company S.A., adding another layer of uncertainty to the future of the transaction.
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