Canadian mining company Sherritt, which suspended its Cuba operations over US sanctions, said on Wednesday that it was negotiating the sale of a majority stake to a US firm.
Potential buyer Gillon Capital is an investment group owned by the family of Ray Washburne, a former advisor to US President Donald Trump.
The negotiations come within weeks of Sherritt announcing the suspension of its activities in Cuba, where its Moa mine produces tens of thousands of tonnes of cobalt and nickel each year.
The Toronto-based firm has been involved in a joint venture with the state-owned General Nickel Company S.A. since the 1990s.
The United States on Wednesday criminally indicted Cuba’s former leader Raul Castro, fuelling speculation that Trump will try to topple the communist state.
In early May, US Secretary of State Marco Rubio said, “the latest wave of sanctions on Cuba, which are intended to apply maximum pressure on the island, targeted the Sherritt joint venture as it “exploited Cuba’s natural resources to benefit the regime.”
Sherritt had said that it was dissolving its Cuban assets in light of the sanctions but reversed the decision on Tuesday.
It stated on Wednesday that it was negotiating the sale of 55 per cent of its shares with Gillon Capital, a deal that would make the US firm Sherritt’s majority shareholder.
“Although Washington does not currently oppose the talks, any final agreement would require its approval." Sherritt continued
Washburne served as president of the Overseas Private Investment Corporation, the US government’s development finance institution, during Trump’s first stint in the White House.
