Elray Resources, Inc. (OTCPK:ELRA) announced that it has entered into a convertible promissory note agreement for a private placement of two convertible promissory notes in the principal amount of $50,000 each with the new accredited investors LG Capital Funding, LLC and GEL Properties LLC on November 11, 2013. The principal amount from LG Capital Funding, LLC was received and recorded on November 19, 2013 and principal amount from GEL Properties LLC was received and recorded on November 20, 2013. The promissory notes bear a fixed interest rate of 8% per annum and mature on August 11, 2014. The promissory note holders have the right to convert any portion of the principal amount of the note at a 45% discount to the average of the three lowest closing bid price over the last 10 trading days prior to the holder's election to convert. The company issued securities pursuant to exemption provided under Regulation D.


On November 11, 2013, Elray Resources, Inc. closed the transaction.