San Gold Corporation (TSX:SGR) announced that it has entered into an agreement for a private placement of secured demand promissory note with existing lender a fund managed by B Asset Manager LP for gross proceeds of $1,415,114 on January 23, 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.

On the same day, the company has received $991,212 in its first tranche. Remaining $423,902 is expected to receive on or about February 6, 2015.