CAPITAL STOCK

12 Months Ended

Jul. 31, 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, the Company 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 “January 2017 Offering”) 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 the Company 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 January 2017 Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase 906,516 shares of our Company, exercisable at an exercise price of $2.00 per share and expiring three years from the date of issuance.

The 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 January 2017 Offering 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

On March 10, 2016, the Company completed a registered offering of 12,364,704 units at a price of $0.85 per unit for gross proceeds of $10,510,000 (the “March 2016 Offering”) pursuant to a prospectus supplement to the 2014 Shelf. Each unit is comprised of one share of the Company and half of one share purchase warrant, with each whole warrant being exercisable at a price of $1.20 to purchase one share of the Company for a three year period from the date of issuance. The Company issued share purchase warrants to agents as part of share issuance costs to purchase 411,997 shares of the Company exercisable at a price of $1.20 per share also for a three year period.

The shares were valued at the Company’s closing price of $0.81 per share at March 10, 2016. The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	1.11	%
Expected Annual Volatility	74.34	%
Expected Contractual Life in Years	3.00
Expected Annual Dividend Yield	0.00	%

The net proceeds from the March 2016 Offering were allocated to the fair value of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	10,015,410
Fair Value of Share Purchase Warrants		1,938,995
Total Fair Value Before Allocation to Net Proceeds	$	11,954,405
Gross Proceeds	$	10,510,000
Share Issuance Costs - Cash		(525,483)
Net Cash Proceeds Received	$	9,984,517
Relative Fair Value Allocation to:
Shares	$	8,365,037
Share Purchase Warrants		1,619,480
	$	9,984,517

On June 25, 2015, the Company completed a public offering of 5,000,000 units at a price of $2.00 per unit for gross proceeds of $10,000,000 (the “June 2015 Offering”) pursuant to a prospectus supplement to the 2014 Shelf. Each unit was comprised of one share of common stock of the Company and one-half of one share purchase warrant, with each whole warrant being exercisable at a price of $2.35 for a three year period to purchase one share of the Company. The Company issued share purchase warrants to agents as part of share issuance costs to purchase 350,000 shares of the Company exercisable at a price of $2.35 per share for a three year period.

The shares were valued at the Company’s closing price of $1.60 at June 25, 2015. The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	1.06	%
Expected Annual Volatility	71.23	%
Expected Contractual Life in Years	3.00
Expected Annual Dividend Yield	0	%

The net proceeds from the June 2015 Offering were allocated to the fair value of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	8,000,000
Fair Value of Share Purchase Warrants		1,475,235
Total Fair Value Before Allocation to Net Proceeds	$	9,475,235
Gross Proceeds	$	10,000,000
Share Issuance Costs - Cash		(891,635)
Net Cash Proceeds Received	$	9,108,365
Relative Fair Value Allocation to:
Shares	$	7,690,249
Share Purchase Warrants		1,418,116
	$	9,108,365

During Fiscal 2015, the Company completed a sale of 280,045 shares at a price of $1.70 per share for gross proceeds of $474,788 through the “at-the-market” offerings pursuant to a Controlled Equity Offering^SM Sales Agreement effective December 31, 2013 between Cantor Fitzgerald & Co. and the Company. 

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.

Share Transactions

A summary of the Company’s share transactions for Fiscal 2017, Fiscal 2016, and Fiscal 2015 are as follows:

	Common		Value per Share				Issuance
Period / Description	Shares Issued		Low		High		Value
Balance, July 31, 2014		90,966,558
Equity Financing		5,280,045		1.70		2.00		7,659,139
Consulting Services		1,108,390		1.07		2.90		1,851,074
Options Exercised (1)		304,657		0.33		1.32		24,550
Share Bonuses		174,437		1.35		1.35		235,490
Balance, July 31, 2015		97,834,087
Equity Financing		12,364,704		0.85		0.85		9,984,517
Credit Facility		1,711,933		0.83		1.20		1,700,000
Asset Acquisition		1,333,560		0.92		0.92		1,226,875
Settlement of Current Liabilities		487,574		0.93		0.93		453,444
Consulting Services		1,429,650		0.72		1.38		1,372,381
Options Exercised		682,167		0.33		0.33		225,115
Shares Issued Under Stock Incentive Plan		826,782		0.73		1.08		726,244
Balance, July 31, 2016		116,670,457
Equity Financing		17,330,836		1.50		1.50		25,996,254
Credit Facility		738,503		1.49		1.49		1,100,000
Asset Acquisition		61,939		1.35		1.43		87,617
Mineral Property		46,800		1.04		1.04		48,672
Settlement of Current Liabilities		1,015,940		1.03		1.54		1,524,650
Consulting Services		865,386		0.86		1.64		1,107,937
Warrants Exercised		1,989,717		1.20		1.20		2,387,660
Options Exercised (2)		264,727		0.45		1.32		146,448
Shares Issued Under Stock Incentive Plan		830,819		0.88		1.61		946,252
Balance, July 31, 2017		139,815,124

(1) 535,000 options were exercised on a forfeiture basis resulting in 230,267 net shares issued.

(2) 309,634 options were exercised on a forfeiture basis resulting in 162,227 net shares issued.

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants is as follows:

	Number of		Weighted Average
	Warrants		Exercise Price
Balance, July 31, 2014		5,009,524	$	2.38
Issued		2,850,000		2.35
Balance, July 31, 2015		7,859,524		2.38
Issued		6,594,348		1.20
Expired		(500,000)		1.00
Balance, July 31, 2016		13,953,872		1.65
Issued		9,571,929		2.00
Exercised		(1,989,717)		1.20
Expired		(1,859,524)		2.60
Balance, July 31, 2017		19,676,560	$	1.78

A summary of share purchase warrants outstanding and exercisable at July 31, 2017 are as follows:

Weighted					Weighted Average
Average		Number of Warrants			Remaining Contractual
Exercise Price		Outstanding		Expiry Date	Life (Years)
$	1.20		4,604,631	March 10, 2019		1.61
	1.35		2,600,000	January 30, 2020		2.50
	1.95		50,000	June 3, 2018		0.84
	2.00		9,571,929	January 20, 2020		2.47
	2.35		2,850,000	June 25, 2018		0.90
$	1.78		19,676,560			2.04

On February 9, 2016, as part of the terms of the Second Amended and Restated Credit Agreement, the 2,600,000 bonus warrants originally issued under the Credit Agreement were re-priced to $1.35 from $2.50 and extended by one and a half years to January 30, 2020. Refer to Note 9.

Stock Options

At July 31, 2017, we had one stock option plan, the 2017 Stock Incentive Plan (the “2017 Plan”).  The 2017 Plan provides for not more than  22,439,420 shares of the Company that may be issued and consists of (i) 12,305,500 shares issuable pursuant to awards previously granted that were outstanding under the 2016 Stock Incentive Plan (the “2016 Plan”); (ii) 4,133,920 shares remaining available for issuance under the 2016 Plan; and (iii) 6,000,000 additional shares that may be issued pursuant to awards that may be granted under the 2017 Plan.  The 2017 Plan superseded and replaced the Company’s 2016 Plan, which superseded and replaced the Company’s prior 2015, 2014, 2013, 2009 and 2006 Stock Incentive Plans (collectively the “Stock Incentive Plan”), such that no further shares are issuable under those prior plans.

During Fiscal 2017, the Company granted stock options under the Stock Incentive Plan to the Company’s directors, officers, employees and consultants to purchase a total of 672,500 shares of the Company exercisable from $0.93 to $1.35 per share over a five-year term.

During Fiscal 2016, the Company granted stock options under the Stock Incentive Plan to the Company’s directors, officers, employees and consultants to purchase a total of 3,033,000 shares of the Company exercisable from $0.93 to $1.32 per share over a five-year term.

During Fiscal 2015, the Company granted stock options under the Stock Incentive Plan to the Company’s directors, officers, employees and consultants to purchase a total of 7,640,000 shares of the Company exercisable from $1.20 to $1.32 per share over a five-year term.

The majority of these stock options are subject to an 18-month vesting provision whereby at the end of each of the first three, six, 12 and 18 months after the grant date, 25% of the total stock option grant becomes exercisable.

The five-year contractual term for the above grants is significantly different from the 10-year contractual term generally applicable to the stock options previously granted by the Company. Since no relevant historical information was available to provide a reasonable basis in estimating the expected life, the Company adopted the simplified method, being the mid-point of the average vesting date and the end of the contractual term, to estimate the expected life for these stock options.

A summary of stock options granted by the Company during Fiscal 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 of Grant	Granted		Price		(Years)		Value		Life (Years)		Interest Rate			Yield			Volatility
August 2, 2016		182,500	$	0.93		5	$	90,222		2.90		0.78	%		0.00	%		84.14	%
August 12, 2016		190,000		1.12		5		106,339		2.90		0.81	%		0.00	%		78.07	%
December 9, 2016		50,000		1.07		5		25,999		2.50		1.29	%		0.00	%		80.90	%
December 9, 2016		100,000		1.07		5		53,819		2.90		1.40	%		0.00	%		77.87	%
March 13, 2017		50,000		1.33		5		36,314		2.90		1.65	%		0.00	%		85.80	%
April 4, 2017		50,000		1.35		5		36,785		2.90		1.44	%		0.00	%		85.86	%
May 9, 2017		50,000		1.35		5		35,524		2.90		1.54	%		0.00	%		82.10	%
Total		672,500					$	385,002

A continuity schedule of outstanding stock options for the underlying common shares at July 31, 2017, and the changes during the periods, is as follows:

					Weighted Average
	Number of Stock		Weighted Average		Remaining Contractual
	Options		Exercise Price		Term (Years)
Balance, July 31, 2014		7,987,214	$	2.10		4.97
Granted		7,640,000		1.32		4.10
Exercised		(609,390)		1.16		3.87
Expired		(15,599)		5.13		-
Forfeited		(126,250)		2.52		6.20
Cancelled		(4,294,000)		2.59		5.59
Balance, July 31, 2015		10,581,975		1.38		3.68
Granted		3,033,000		1.02		4.65
Exercised		(682,167)		0.33		0.01
Expired		(1,950)		5.90		-
Forfeited		(825,000)		1.48		0.02
Balance, July 31, 2016		12,105,858		1.34		3.36
Granted		672,500		1.11		4.24
Exercised		(412,134)		0.56		-
Expired		(100,724)		4.35		-
Forfeited		(5,000)		0.93		-
Balance, July 31, 2017		12,260,500	$	1.33		2.45

At July 31, 2017, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was estimated at $4,910,235 (vested: $4,473,982 and unvested: $436,253).

At July 31, 2017, the unrecognized compensation cost related to non-vested stock options granted under the Company’s Stock Incentive Plan was $187,530 expected to be recognized over 0.62 years.

A summary of stock options outstanding and exercisable at July 31, 2017 is as follows:

	Options Outstanding				Options Exercisable
	Outstanding at		Weighted Average		Exercisable at		Weighted Average
Range of Exercise Prices	July 31, 2017		Exercise Price		July 31, 2017		Exercise Price
$0.45 to $0.99		2,980,500	$	0.79		2,484,750	$	0.76
$1.00 to $1.99		8,007,500		1.29		7,737,500		1.29
$2.00 to $3.86		1,272,500		2.89		1,272,500		2.89
		12,260,500	$	1.33		11,494,750	$	1.35

Stock-Based Compensation

A summary of stock-based compensation expense for Fiscal 2017, Fiscal 2016, and Fiscal 2015 is as follows:

	Year Ended July 31,
	2017		2016		2015
Stock-Based Compensation for Consultants
Common stock issued for consulting services	$	1,184,660	$	1,630,635	$	1,869,074
Stock options issued to consultants		469,815		78,014		588,207
		1,654,475		1,708,649		2,457,281
Stock-Based Compensation for Management
Common stock issued to management		686,584		262,130		105,998
Stock options issued to management		473,811		735,991		1,617,937
		1,160,395		998,121		1,723,935
Stock-Based Compensation for Employees
Common stock issued to employees		584,837		205,860		111,492
Stock options issued to employees		369,663		171,533		1,325,040
		954,500		377,393		1,436,532
	$	3,769,370	$	3,084,163	$	5,617,748