Lekoil Limited says that the independent board of directors of the Company, being all of the Directors save for Lekan Akinyanmi, the Company's Chief Executive Officer (the "Independent Directors") have approved the provision of a US$1.5 million loan to Lekan Akinyanmi (the "Loan"). The Loan has a three year term and bears interest at a rate of four per cent. per annum. Other than a bonus, from May 2013 until November 2014, Lekan Akinyanmi received no remuneration in cash from Lekoil.
The Loan constitutes a related party transaction under the AIM Rules. The Independent Directors consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as Lekoil's shareholders are concerned.