NOTE 9:

LONG-TERM DEBT

On February 9, 2016, we entered into the second amended and restated credit agreement (the “Second Amended Credit Agreement”) with our lenders, Sprott Resource Lending Partnership, CEF (Capital Markets) Limited and Resource Income Partners Limited Partnership (collectively, the “Lenders”), under which we had previously drawn down the maximum $20,000,000 in principal under the current credit facility (the “Credit Facility”).

As at April 30, 2017, long-term debt consisted of the following:

	April 30, 2017		July 31, 2016
Principal amount	$	20,000,000	$	20,000,000
Unamortized discount		(1,031,992)		(801,822)
Long-term debt, net of unamortized discount	$	18,968,008	$	19,198,178

During the three months ended April 30, 2017, and pursuant to the terms of the Second Amended Credit Agreement, we issued 738,503 shares with a fair value of $1,100,000, representing 5.5% of the $20,000,000 principal balance outstanding at January 31, 2017, as payment of anniversary fees to the Lenders.

For the three and nine months ended April 30, 2017 and 2016, the amortization of debt discount totaled $268,262 and $869,830 (three and nine months ended April 30, 2016: $277,417 and $960,807), respectively, which was recorded as interest expense and included in our condensed consolidated statements of operations and comprehensive loss.

The aggregate yearly maturities of the long-term debt based on principal amounts outstanding at April 30, 2017 are as follows:

Fiscal 2017	$	-
Fiscal 2018		-
Fiscal 2019		10,000,000
Fiscal 2020		10,000,000
Total	$	20,000,000