Financial Instruments

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

10. Financial Instruments

Fair Value Measurements

All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of qualifying assets, in which case they are added to the costs of those assets until such time as the assets are substantially ready for their intended use or sale.

The three levels of the fair value hierarchy are as follows:

Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

	June 30, 2016
	Total		Level 1		Level 2		Level 3
Liabilities:
Share purchase warrants (Note 7(iii))	$	8,072,628	$	-	$	8,072,628	$	-
Derivatives – Hedging instruments (Note 8)		321,634		-		321,634		-
	$	8,394,262	$	-	$	8,394,262	$	-

	December 31, 2015
	Total		Level 1		Level 2		Level 3
Liabilities:
Share purchase warrants (Note 7(iii))	$	2,498,269	$	-	$	2,498,269	$	-

Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value measurement of the financial instruments above use observable inputs in option price models such as the binomial and the Black-Scholes valuation models.