CAPITAL STOCK

12 Months Ended

Jul. 31, 2012

CAPITAL STOCK [Text Block]

NOTE 11: CAPITAL STOCK

Capital Stock

At July 31, 2012, the Company’s capital stock was 750,000,000 authorized common shares with a par value of $0.001 per share.

Equity Financing

On April 10, 2012, the Company completed a public offering of its common stock for net proceeds of $20,968,743 through the sale of 6,246,078 shares of the Company at a price of $3.60 per share. The Company issued an additional 38,692 shares under this financing as share issuance costs.

On October 26, 2010, the Company completed a private placement of 8,111,313 units at a price of $3.40 per unit for net proceeds of $25,654,398. Each unit is comprised of one common share of the Company and one half of one non-transferable share purchase warrant, each whole warrant entitling the holder to purchase an additional common share of the Company at a price of $3.95 per share for a one year period. In accordance with the terms of the private placement, the Company filed a Registration Statement with the SEC which was declared effective on December 9, 2010.

Share Transactions
			Value per Share
Period / Description	Common
	Shares Issued		Low		High		Issuance Value
Balance, July 31, 2009	56,237,269
STMV and Everest Acquisitions	2,755,000	$	3.54	$	3.54	$	9,947,400
Options Exercised (1)	928,391		0.33		2.40		452,026
Service Agreements	578,632		2.17		3.72		1,617,085
Warrants Exercised	223,461		3.10		3.10		692,729
Bonus Issuance Resolutions	55,136		3.66		3.66		201,798
Mineral Property Acquisitions	10,448		3.08		3.08		32,180
Balance, July 31, 2010	60,788,337
Private Placement	8,111,313		3.40		3.40		25,654,398
Warrants Exercised	3,163,756		3.10		3.95		7,926,371
Options Exercised (2)	1,024,206		0.33		3.67		3,525,524
Mineral Property Acquisitions	225,000		3.21		3.21		722,250
Service Agreements	174,725		2.53		7.00		754,782
Balance, July 31, 2011	73,487,337
Equity Financing	6,284,770		3.60		3.60		20,968,743
Mineral Property Acquisition	4,520,669		2.29		3.90		15,957,832
Options Exercised (3)	191,872		0.33		3.72		198,728
Database Acquisition	159,236		3.21		3.21		511,148
Settlement of Convertible Debentures (4)	128,508		3.18		3.96		699,340
Warrants Exercised	112,451		3.10		4.25		355,392
Service Agreements	50,000		2.95		4.02		167,374
Settlement of Accounts Payable	40,312		3.93		3.93		158,426
Balance, July 31, 2012	84,975,155

(1)	190,000 options were exercised on a cashless basis resulting in 96,391 net shares issued.
(2)	268,625 options were exercised on a cashless basis resulting in 123,581 net shares issued.
(3)	115,000 options were exercised on a cashless basis resulting in 34,247 net shares issued.
(4)	Issuance value is calculated at the fair value of the convertible debentures on the settlement date.

Share Purchase Warrants

A continuity schedule of exercisable and outstanding share purchase warrants for the underlying common shares at July 31, 2012, and the changes during the year, is presented below:

	Number of Warrants			Weighted average exercise price	Weighted average remaining   contractual term (years)
Balance, July 31, 2009	8,540,819		$	3.00	1.80
Issued	222,926			3.45	2.00
Exercised	(223,461	)		3.10	0.68
Expired	(3,308,398	)		3.17	-
Balance, July 31, 2010	5,231,886			2.90	1.41
Issued	4,055,659			3.95	1.00
Exercised	(3,163,756	)		2.51	0.18
Expired	(1,774,806	)		3.10	-
Balance, July 31, 2011	4,348,983			3.57	0.79
Issued	1,276,280			9.36	0.75
Exercised	(112,451	)		3.16	1.32
Expired	(3,954,000	)		4.90	-
Balance, July 31, 2012	1,558,812		$	4.95	1.45

Stock Options

At July 31, 2012, the Company has two Stock Option Plans as follows:

• 2006 Stock Option Plan: The number of common shares available for issuance under this plan is 10,000,000 shares; and

• 2009 Stock Option Plan: The number of common shares available for issuance under this plan is 7,000,000 shares.

A summary of stock options grant under the Company’s Stock Option Plans for Fiscal 2012 using the Black-Scholes option pricing model is presented below:

	Options		Exercise	Term			Expected	Risk-Free	Dividend	Expected
Date / Period	Issued		Price	(Years)		Fair Value	Life (Years)	Interest Rate	Yield	Volatility
August 18, 2011	15,000	$	3.15	10	$	32,998	4	0.61%	0.00%	102.50%
September 26, 2011	1,005,000		2.78	10		2,070,098	4	0.65%	0.00%	112.05%
Three months ended October 31, 2011	1,020,000					2,103,096
November 2, 2011	10,000		3.15	10		20,823	4	0.63%	0.00%	94.77%
November 3, 2011	15,000		3.34	10		34,991	4	0.65%	0.00%	102.47%
November 7, 2011	20,000		3.21	10		47,606	4	0.63%	0.00%	112.23%
January 10, 2012	10,000		3.05	10		20,605	4	0.53%	0.00%	97.83%
January 16, 2012	50,000		3.43	10		126,743	4	0.57%	0.00%	111.71%
Three months ended January 31, 2012	105,000					250,768
May 4, 2012	100,000		2.70	10		182,955	4	0.57%	0.00%	98.20%
May 16, 2012	10,000		2.25	10		14,567	4	0.57%	0.00%	92.17%
May 23, 2012	50,000		2.25	10		61,981	4	0.45%	0.00%	91.17%
Three months ended July 31, 2012	160,000					259,503
Total	1,285,000				$	2,613,367

During Fiscal 2012, the weighted average fair value per option granted under the Company’s Stock Option Plans was $2.03.

In addition to the stock option grants presented in the above table, and as a result of the acquisition of Cue effective March 30, 2012, the Company issued the following options, which were not issued pursuant to, and are not subject to the terms and conditions of, the Company’s Stock Option Plans, in exchange for Cue stock options and broker options:

• Stock options to purchase 48,748 shares of the Company exercisable at prices ranging from $5.13 to $23.08 per share until expiry from July 15, 2013 to August 3, 2016; and

• Broker options to purchase 38,773 shares of the Company exercisable at a price of $3.59 per share until expiry on November 10, 2012.

A continuity schedule of outstanding stock options for the underlying common shares at July 31, 2012, and the changes during the period, is presented below:

	Number of Stock Options			Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)
Balance, July 31, 2009	5,280,500		$	0.57	7.54
Issued	2,897,500			2.65	10.00
Exercised	(946,750	)		0.55	7.45
Expired	(245,000	)		1.46	3.23
Balance, July 31, 2010	6,986,250			1.41	7.67
Issued	2,824,500			2.77	10.00
Exercised	(1,169,250	)		1.73	7.84
Cancelled	(6,250	)		0.45	8.00
Forfeited	(55,500	)		2.73	9.00
Balance, July 31, 2011	8,579,750			1.79	7.40
Issued	1,372,521			3.00	9.29
Exercised	(272,625	)		1.93	6.21
Forfeited	(120,375	)		3.18	9.08
Balance, July 31, 2012	9,559,271		$	1.95	6.52

The aggregate intrinsic value under the provisions of ASC 718 of all outstanding options at July 31, 2012 was estimated at $5,267,333 (vested: $5,267,333 and unvested: $Nil).

As at July 31, 2012, unrecognized compensation cost related to non-vested stock options granted under the Company’s Stock Option Plans was $817,922, which is expected to be recognized over 1.34 years.

A summary of options outstanding and exercisable at July 31, 2012 is presented below:
	Options Outstanding			Options Exercisable
Range of Exercise Prices	Outstanding at		Weighted Average	Exercisable at		Weighted Average
	July 31, 2012		Exercise Price	July 31, 2012		Exercise Price
$0.33 to $0.70	3,235,000	$	0.40	3,235,000	$	0.40
$0.71 to $2.45	3,721,750		2.37	3,661,750		2.38
$2.46 to $23.08 (5)	2,602,521		3.28	2,006,273		3.37
	9,559,271	$	1.95	8,903,023	$	1.88

(5) Options include 48,748 options and 38,773 broker options issued in connection with the acquisition of Cue, which were not issued pursuant to, and are not subject to the terms and conditions of, the Company’s Stock Option Plans

Stock-Based Compensation

A summary of stock-based compensation expense for Fiscal 2012, 2011 and 2010 is presented below:

		Year Ended			Year Ended			Year Ended
		July 31, 2012			July 31, 2011			July 31, 2010
Stock-Based Consulting Fees
Common stock issued for consulting services	$	167,374		$	754,782		$	1,617,085
Common stock issued for bonuses		-			-			58,482
Options issued to consultants		763,848			1,798,833			1,964,006
		931,222			2,553,615			3,639,573
Stock-Based Management Fees
Common stock issued for bonuses		-			-			26,564
Options issued to management		834,219			2,079,707			1,960,000
		834,219			2,079,707			1,986,564
Stock-Based Wages and Benefits
Common stock issued for bonuses		-			-			116,747
Options issued to employees		1,144,062			1,956,906			1,286,506
		1,144,062			1,956,906			1,403,253
Stock-based compensation charged to inventory		(166,813	)		(247,489	)		-
	$	2,742,690		$	6,342,739		$	7,029,390