CAPITAL STOCK

9 Months Ended

Apr. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 11: CAPITAL STOCK

Equity Financing

We filed a Form S-3 shelf registration statement, which was declared effective on January 10, 2014 (the “2014 Shelf”). The 2014 Shelf provided for the public offer and sale of certain securities of our Company from time to time, at our discretion, up to an aggregate offering amount of $100 million.

 

On January 20, 2017, we completed a public offering of 17,330,836 units at a price of $1.50 per unit for gross proceeds of $25,996,254 (the “Equity Financing”) pursuant to a prospectus supplement to the 2014 Shelf. Each unit is comprised of one share of the Company and one-half of one share purchase warrant, however, as a result of rounding, since we will not issue fractional shares, there were only actually 9,571,929 whole warrants issued instead of 9,571,934 whole warrants. Each whole warrant entitles its holder to acquire one share at an exercise price of $2.00 per share, exercisable six months and expiring three years from the date of issuance. In connection with the Equity Financing, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase 906,516 shares of our Company, exercisable six months to three years from the date of issuance at a price of $2.00 per share.

 

We filed a Form S-3 shelf registration statement, which was declared effective on March 10, 2017 (the “2017 Shelf”), and as a result, it replaced the 2014 Shelf which was then deemed terminated. The 2017 Shelf provides for the public offer and sale of certain securities of the Company from time to time, at our discretion, up to an aggregate offering amount of $100 million.

The Equity Financing shares were valued at the Company’s closing price of $1.54 per share at January 20, 2017. The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	1.50	%
Expected Annual Volatility	76.96	%
Expected Contractual Life in Years	3.00
Expected Annual Dividend Yield	0.00	%

The net proceeds from the Equity Financing were allocated to the fair values of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	26,689,487
Fair Value of Share Purchase Warrants		5,873,932
Total Fair Value Before Allocation to Net Proceeds	$	32,563,419
Gross Proceeds	$	25,996,254
Share Issuance Costs - Cash		(1,550,843)
Net Cash Proceeds Received	$	24,445,411
Relative Fair Value Allocation to:
Shares	$	20,035,841
Share Purchase Warrants		4,409,570
	$	24,445,411

Share Transactions

A summary of the Company’s share transactions for the nine months ended April 30, 2017 are as follows:

	Common		Value per Share				Issuance
Period / Description	Shares Issued		Low		High		Value
Balance, July 31, 2016		116,670,457
Mineral Property		46,800	$	1.04	$	1.04	$	48,672
Consulting Services		166,926		0.90		1.06		175,908
Options Exercised (1)		133,125		0.45		0.45		59,906
Settlement of Current Liabilities		88,822		1.03		1.03		91,488
Shares Issued Under Stock Incentive Plan		292,957		0.93		1.09		291,770
Balance, October 31, 2016		117,399,087
Equity Financing		17,330,836		1.50		1.50		25,996,254
Consulting Services		169,166		0.86		1.49		195,991
Options Exercised (2)		87,050		0.45		0.93		40,862
Warrants Exercised		1,179,493		1.20		1.20		1,415,392
Shares Issued Under Stock Incentive Plan		231,269		0.88		1.12		217,698
Balance, January 31, 2017		136,396,901
Debt Facility		738,503		1.49		1.49		1,100,000
Consulting Services		223,531		1.43		1.55		322,271
Options Exercised (3)		30,875		0.93		0.93		28,714
Warrants Exercised		441,177		1.20		1.20		529,412
Property Acquisition		50,000		1.43		1.43		71,500
Settlement of Current Liabilities		62,857		1.32		1.48		83,572
Shares Issued Under Stock Incentive Plan		146,199		1.31		1.61		215,896
Balance, April 30, 2017		138,090,043

⁽¹⁾ 100,000 options were exercised on a forfeiture basis, of which 46,875 shares with a value of $21,094 were forfeited as payment for the exercise value resulting in 53,125 net shares being issued with a value of $23,906 as a consequence of such exercise.

⁽²⁾ 142,134 options were exercised on a forfeiture basis, of which 57,584 shares with a value of $26,624 were forfeited as payment for the exercise resulting in 84,550 net shares being issued with a value of $38,537 as a consequence of such exercise.

⁽³⁾ 30,000 options were exercised on a forfeiture basis, of which 16,625 shares with a value of $15,461 were forfeited as payment for the exercise resulting in 13,375 net shares being issued with a value of $12,439 as a consequence of such exercise.

Share Purchase Warrants

In connection with the Equity Financing closed on January 20, 2017, we issued 8,665,413 share purchase warrants and 906,516 compensation warrants to agents as issuance costs with an exercise price of $2.00 per share, exercisable six months and expiring three years from the date of issuance.

A continuity schedule of outstanding share purchase warrants for the nine months ended April 30, 2017 is as follows:

					Weighted Average
	Number of		Weighted Average		Remaining Contractual
	Warrants		Exercise Price		Term (Years)
Balance, July 31, 2016		13,953,872		1.65		2.31
Issued		9,571,929		2.00		2.72
Exercised		(1,620,670)		1.20		-
Expired		(1,859,524)		2.60		-
Balance, April 30, 2017		20,045,607	$	1.77		2.29

A summary of share purchase warrants outstanding and exercisable at April 30, 2017 are as follows:

Weighted						Weighted Average
Average		Number of Warrants				Remaining Contractual
Exercise Price		Outstanding			Expiry Date	Life (Years)
$	1.20		4,973,678		March 10, 2019		1.86
	1.35		2,600,000		January 30, 2020		2.75
	1.95		50,000		June 3, 2018		1.09
	2.00		9,571,929	*	January 20, 2020		2.72
	2.35		2,850,000		June 25, 2018		1.15
$	1.77		20,045,607				2.29

*These share purchase warrants will be exercisable on July 20, 2017 pursuant to the Equity Financing.

Stock Options

At April 30, 2017, we had one stock option plan, the 2016 Stock Incentive Plan (the “2016 Plan”).  The 2016 Plan provides for not more than 18,892,856 shares of the Company that may be issued and consists of (i) 10,467,134 shares issuable pursuant to awards previously granted that were outstanding under our 2015 Stock Incentive Plan (the “2015 Plan”); (ii) 7,225,722 shares remaining available for issuance under the 2015 Plan; and (iii) 1,200,000 additional shares that may be issued pursuant to awards that may be granted under the 2016 Plan. The 2016 Plan superseded and replaced the Company’s 2015 Plan, which superseded and replaced the Company’s prior 2014, 2013, 2009 and 2006 Stock Incentive Plans (collectively the “Stock Incentive Plan”), such that no further shares are issuable under those prior plans.

A summary of stock options granted by the Company during the nine months ended April 30, 2017, including corresponding grant date fair values and assumptions using the Black Scholes option pricing model is as follows:

	Options	Exercise		Term		Fair		Expected		Risk-Free			Dividend			Expected
Date	Issued	Price		(Years)		Value		Life (Years)		Interest Rate			Yield			Volatility
August 2, 2016	182,500	$	0.93		5.00	$	90,222		2.90		0.78	%		0.00	%		84.14	%
August 12, 2016	190,000		1.12		5.00		106,339		2.90		0.81	%		0.00	%		78.07	%
December 9, 2016	50,000		1.07		5.00		25,999		2.50		1.29	%		0.00	%		80.90	%
December 9, 2016	100,000		1.07		5.00		53,819		2.90		1.40	%		0.00	%		77.87	%
March 13, 2017	50,000		1.33		5.00		36,314		2.90		1.65	%		0.00	%		85.80	%
April 4, 2017	50,000		1.35		5.00		36,785		2.90		1.44	%		0.00	%		85.86	%
Total	622,500					$	349,478

A continuity schedule of outstanding stock options for the underlying common shares for the nine months ended April 30, 2017 is as follows:

					Weighted Average
	Number of Stock		Weighted Average		Remaining Contractual
	Options		Exercise Price		Term (Years)
Balance, July 31, 2016		12,105,858	$	1.34		3.36
Issued		372,500		1.03		4.77
Exercised		(180,000)		0.45		-
Expired		(10,724)		5.13		-
Balance, October 31, 2016		12,287,634	$	1.34		3.21
Issued		150,000		1.07		4.61
Exercised		(144,634)		0.47		-
Expired		(40,000)		2.46		-
Balance, January 31, 2017		12,253,000	$	1.35		3.02
Issued		100,000		1.34		4.90
Exercised		(47,500)		0.93		-
Expired		(50,000)		5.70		-
Balance, April 30, 2017		12,255,500	$	1.33		2.80

At April 30, 2017, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was estimated at $1,498,281 (vested: $1,174,003 and unvested: $324,278).

At April 30, 2017, unrecognized stock-based compensation expense related to the unvested portion of stock options granted under the Stock Incentive Plan totaled $270,751 to be recognized over the next 0.63 years.

A summary of stock options outstanding and exercisable at April 30, 2017 is as follows:

	Options Outstanding				Options Exercisable
	Outstanding at		Weighted Average		Exercisable at		Weighted Average
Range of Exercise Prices	April 30, 2017		Exercise Price		April 30, 2017		Exercise Price
$0.45 to $0.96		2,708,000	$	0.77		1,802,750	$	0.69
$0.97 to $2.45		8,762,500		1.34		8,417,500		1.35
$2.46 to $5.70		785,000		3.18		785,000		3.18
		12,255,500	$	1.33		11,005,250	$	1.37

Stock-Based Compensation

A summary of stock-based compensation expense is as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2017		2016		2017		2016
Stock-Based Compensation for Consultants
Common stock issued for consulting services	$	398,944	$	470,549	$	920,971	$	1,429,324
Stock options issued to consultants		24,796		(4,461)		303,047		66,317
		423,740		466,088		1,224,018		1,495,641
Stock-Based Compensation for Management
Common stock issued to management		33,057		45,299		175,950		81,495
Stock options issued to management		62,873		195,464		430,218		640,789
		95,930		240,763		606,168		722,284
Stock-Based Compensation for Employees
Common stock issued to employees		106,166		76,299		322,613		106,602
Stock options issued to employees		42,041		15,710		329,379		163,124
		148,207		92,009		651,992		269,726
	$	667,877	$	798,860	$	2,482,178	$	2,487,651