COMMON STOCK

12 Months Ended

Sep. 30, 2012

Equity [Abstract]

Common Stock

11. COMMON STOCK

On November 9, 2010, the Company completed two private placements for an aggregate of 29,285,713 units at a price of $0.07 per unit for an aggregate of $2,050,000 (including the Deposit received prior to September 30, 2010 of $48,555). Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.105 per common share for a period of three years from the date of closing, provided that if the closing price of the common shares of the Company on the principal market on which the shares trade is equal to or exceeds $1.00 for 30 consecutive trading days, the warrant term shall automatically accelerate to the date which is 30 calendar days following the date that written notice has been given to the warrant holders. The warrants expire on November 9, 2013.

On March 23, 2011, the Board of Directors (the “Board”) approved the issuance of 500,000 restricted common shares valued at $70,000 to be issued to a new director as an incentive to join our Board. Also, on March 23, 2011, the Board approved issuance of 180,000 restricted common shares valued at $25,200 to be issued on April 1, 2011 to a contractor as compensation for services provided to the Company during the period from April 1, 2010 to March 31, 2011. These transactions have been recorded in the Balance Sheets under Shareholders’ Equity at the fair value of the common shares issued.

On August 14, 2011, 12,638,297 warrants previously granted on August 14, 2008 expired unexercised.

On October 31, 2011, 14,500,000 warrants previously granted on October 31, 2008 expired unexercised.

On June 22, 2012, 1,000,000 warrants previously granted on June 22, 2007 expired unexercised.

On July 11, 2012, 38,800 warrants previously granted on July 11, 2007 expired unexercised.

The following table summarizes the Company’s warrants outstanding as of September 30, 2012:

	Shares Underlying Warrants Outstanding						Shares Underlying Warrants Exercisable
Range of Exercise Price	Shares Underlying Warrants Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Shares Underlying Warrants Exercisable		Weighted Average Exercise Price
$0.105 at September 30, 2012		29,285,713		1.11	$	0.105		29,285,713	$	0.105
		29,285,713		1.11	$	0.105		29,285,713	$	0.105

The following is a summary of warrant activity for the year ending September 30, 2012:

	Number of Warrants			Weighted Average Exercise Price		Intrinsic Value
Balance, September 30, 2011		44,824,513		$	0.30	$	–
Warrants expired October 31, 2011		(14,500,000	)		0.63		–
Warrants expired June 22, 2012		(1,000,000	)		1.20		–
Warrants expired July 11, 2012		(38,800	)		1.20		–
Balance, September 30, 2012		29,285,713		$	0.105	$	–
Outstanding Warrants, September 30, 2012		29,285,713		$	0.105	$	–

There were 29,285,713 warrants outstanding as of September 30, 2012 (September 30, 2011 – 44,824,513), which have a historical fair market value of $763,533 (September 30, 2011 - $2,798,059).

The Company received $300,000 for the year ended September 30, 2012 (September 30, 2011 - $nil) in deposits for stock, for which the Company received subsequent subscription agreements.