Share Capital and Other Equity Instruments

9 Months Ended

Sep. 30, 2023

Share Capital and Other Equity Instruments [Abstract]

SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

Authorized Capital

The holders of the Company’s common shares are entitled to one vote per share. Holders of common shares are entitled to ratably receive such dividends, if any, as may be declared by the board of directors, out of legally available funds. Upon the liquidation, dissolution, or winding down of the Company, holders of common shares are entitled to share ratably in all assets of the Company that are legally available for distribution. As of September 30, 2023 and December 31, 2022, an unlimited number of common shares were authorized for issuance.

Warrant Exercises

During the three and nine months ended September 30, 2023, an aggregate of 656,000 warrants were exercised for total gross proceeds of $551,629.

During the three and nine months ended September 30, 2022, an aggregate of 274,404 and 2,020,351 warrants were exercised for total gross proceeds of $289,118 and $2,620,395, respectively.

Incentive Stock Option Plan

The Company maintains an Incentive Stock Option Plan (the “Plan”) that permits the granting of stock options as incentive compensation. Shareholders of the Company approved the Plan on June 30, 2008 and amendments to the Plan on June 20, 2013. The board of directors approved additional changes to the Plan on September 12, 2015. On October 1, 2021, the Company further amended the Plan. On May 24, 2023, the Board of Directors approved and on June 29, 2023 the shareholders approved an amendment to the Plan.

The purpose of the Plan is to attract, retain, and motivate directors, management, staff, and consultants by providing them with the opportunity, through stock options, to acquire a proprietary interest in the Company and benefit from its growth.

The Plan provides that the aggregate number of common shares for which stock options may be granted will not exceed 10% of the issued and outstanding common shares at the time stock options are granted. As of September 30, 2023, a total of 44,258,565 common shares were outstanding, and at that date the maximum number of stock options eligible for issue under the Plan was 4,425,856.

Shareholder Rights Plan

On May 24, 2023, the Company adopted and on June 29, 2023, the shareholders approved a shareholder rights plan, which is designed to ensure the fair treatment of shareholders in connection with any take-over bid for the Company and to provide the Board of Directors and shareholders with sufficient time to fully consider any unsolicited takeover bid (the “Shareholder Rights Plan”). The Shareholder Rights Plan also provides the Board of Directors with time to pursue, if appropriate, other alternatives to maximize shareholder value in the event of a takeover bid.

Pursuant to the terms of the Shareholder Rights Plan subject to a triggering event as defined in the Shareholder Rights Plan and as determined by the Board of Directors, rights (the “Rights”) will be issued to holders of Common Shares at a rate of one Right for each Share outstanding.

Stock Options 

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Weighted Average Grant Date Fair Value		Intrinsic Value
Outstanding – January 1, 2023		4,306,334		$	1.24		3.35	$	0.61	$	60,965
Granted		-			-		-		-
Expired		(536,000	)		1.42		-		0.40
Exercised		-			-		-		-		-
Outstanding –September 30, 2023		3,770,334		$	1.21		3.01	$	0.66	$	175,122
Exercisable –September 30, 2023		3,770,334		$	1.21		3.01	$	0.66	$	175,122

The Company’s stock-based compensation expense related to stock options for the three months ended September 30, 2023 and 2022 was $0. The Company’s stock-based compensation expense related to stock options for the nine months ended September 30, 2023 was $350,900, of which $57,417 and $293,483 was included in mining expenditures and general and administrative expenses, respectively, on the Company’s condensed interim consolidated statements of operations and other comprehensive loss. The Company’s stock-based compensation expense related to stock options for the nine months ended September 30, 2022 was $753,219, which was included in general and administrative expenses on the Company’s condensed interim consolidated statements of operations and other comprehensive loss. As of September 30, 2023, there was no unamortized stock option expense.

Warrants

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Life (Years)		Intrinsic Value
Outstanding – January 1, 2023		9,362,076		$	1.19		1.43	$	27,227
Issued		-			-		-		-
Exercised		(656,000	)		-		-		-
Expired/Forfeited		-			-		-		-
Outstanding –September 30, 2023		8,706,076		$	1.21		0.71	$	1,097,558
Exercisable – September 30, 2023		8,706,076		$	1.21		0.71	$	1,097,558