Mustang Alliances, Inc. (OTCBB:MSTG) announced a private placement of secured convertible promissory note for gross proceeds of $1,350,000 on June 28, 2013. The transaction will include participation from an accredited investor, Carlton Family Ltd. The note issued will mature on June 28, 2016. The note is convertible into the common share of the company at $0.10 per share based on each $1 of outstanding principal amount.

The interest on the note will be payable by making available to the investor, on a monthly basis commencing on August 28, 2013, 50 ounces of gold produced by the company. If the 50 ounces of gold are not available, the gold shall be made available to the investor at the next monthly interest date. The company will also issue 13,500,000 warrants exercisable at $0.15 per share for a period of five years.

The company will issue securities pursuant to exemption provided under Regulation D. David Lubin of David Lubin & Associates, PLLC acted as a legal advisor to Mustang Alliances, Inc.