Magellan Gold Corporation (OTCPK:MAGE) announced that it has entered into a securities purchase agreement for a private placement of a 10% convertible promissory note for gross proceeds of $184,000 in February 2021. The transaction included participation from AJB Capital Investments, LLC. The note is unsecured has a principal amount of $200,000. The investor was also paid a commitment fee in the amount of $200,000 payable by the issuance of an aggregate of 266,667 shares of the company’s common stock. The commitment fee is partially redeemable under certain circumstances. The note is convertible into shares of common stock at a conversion price equal to 90% of the lowest trading price of the common stock during the 20 trading days immediately preceding the conversion. The conversion price is subject to adjustment under certain circumstances. The company issued securities pursuant to exemption provided under Regulation D.