Buchan did something similar with Claude couple of years ago.
He was to help the existing board's efforts to sell the company. RIC’s board was actually very weak. The convertible was structured like a sales commission. Buchan makes a lot of money on the warrants if he can sell the company at a higher price. But, he can’t loose anything since the investment is a bond. Clearly RIC didn’t need the money. They amicably closed out this relationship because it has become clear they aren’t going to sell RIC and Buchan has NO interest in being a board member.
I spoke to company officials at PDAC and it was explained to me that Martin Rivard felt strongly about selling the company but the board wanted a higher price. Martin resigned and sold his shares.
They had clearly put lipstick on a pig. Franceour should have never gone back into production . . . they have already written off most of the investment. And, Wasamac remains an advanced exploration project. So, turns out they should have listened to Martin . . . he obviously had a better understanding of the problems.
I also tried to reconcile the cash burn and my best guess is that they continue to spend heavily at Franceour.