It is called benchmarking @stevo
This is how international related parties also do business. To put it simply, you benchmark the amounts of what unrelated parties at arm's length are undertaking transactions at and apply the same rate. This applies to interest on loans, mark ups on services and contract manufacturing (to name a few).
Before any accusations are made in relation the high amount of the rate, we should wait for Pareto to close their loan note (I would expect this short term loan be a couple of percent higher rate than whatever Pareto Bond notes provide).
Let's get this straight, Mike gets paid about $20k a year, the only way he will realise value is through the eventuation of the Lindi project. keeping aligned with shareholders and their interests at heart.
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