TORONTO — Sherritt International Corp. has signed a non-binding agreement with Gillon Capital LLC that would allow the family office to acquire a majority stake in the Canadian miner. The preliminary private placement deal would see Gillon Capital hold a warrant permitting it to buy enough shares to give it a 55% stake in Sherritt. Sherritt said it expects the price paid by Gillon Capital will be at a discount to its closing share price on May 15 if the deal goes ahead.

Sherritt confirmed that the U.S. State and Treasury Departments do not object to Gillon Capital's negotiations with the company but said 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.

Gillon Capital is a family office linked to a former adviser of U.S. President Donald Trump. It is the family office for the Washburne family. Ray Washburne was vice chairman of the Trump Victory Committee in 2016. He was appointed as head of the Overseas Private Investment Corporation from 2017 to 2019 and later served as a member of the president's intelligence advisory board. Washburne has also been a major Republican fundraiser.

The company also announced that it is no longer pursuing a plan to dissolve its Cuban joint venture. Sherritt has had a 32-year presence in Cuba. Earlier this month, the company suspended direct participation in its Moa joint venture in Cuba after the U.S. increased pressure on the country.