San Gold Corporation (TSX:SGR) announced a private placement of secured demand promissory note with returning lender a fund managed by B Asset Manager LP for gross proceeds up to 3,500,000 on February 24, 2015. The note will have a fixed interest rate of 14% per annum payable monthly. The note is not convertible into other securities of the company.

The Note is subject to a 3% commitment fee payable to the Lender. In the event of non-repayment of the note, the Lender shall be granted a 1% royalty fee on the Manitoba mineral properties of San Gold until such time as the note have been repaid. On the same day, the company has received $1,956,691 in the transaction.