San Gold arranges $1.57M (U.S.) loan with B Asset

2015-01-14 17:39 ET - News Release

Mr. Greg Gibson reports

SAN GOLD ANNOUNCES SECURED LOAN

San Gold Corp. has obtained a secured loan in the amount of $1,573,271 (U.S.) from a fund managed by B Asset Manager LP. The loan is evidenced by a secured demand promissory note issued to the lender by San Gold. The note is secured by a debenture granted to the lender over all of the assets of San Gold. The note bears interest in the amount of 14 per cent per annum, and interest is payable monthly, in advance. San Gold paid a commitment fee of $250,000 (U.S.) to the lender as partial consideration for the provision of the loan. The note is repayable on demand or in certain other circumstances at the option of the lender. The note is not convertible into other securities of San Gold.

This note is in addition to two notes issued previously by San Gold to a fund managed by B Asset Manager.

The lender has also reached an agreement with San Gold to provide two additional loans in the amount of $939,854 (U.S.) on or about Jan. 23, 2015, and $423,902 (U.S.) on or about Feb. 6, 2015, on the same terms, subject to the lender's approval at that time.

The net proceeds from the sale of the note will be used by San Gold to finance its operations.

We seek Safe Harbor.

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