Share Capital

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note Disclosure [Text Block]

10.

Share Capital

The Company’s common shares outstanding are no par value, voting shares with no preferences or rights attached to them.

Common shares

On February 22, 2018, the Company closed a rights offering and issued 188,952,761 shares for total gross proceeds of $25,036. The Company paid associated fees of $587 which were classified as share issue costs.

Stock options

The Company’s current stock option plan (the “Plan”) was adopted by the Company in

2013

and approved by shareholders of the Company in

2013

. The Plan provides a fixed number

of 7,200,000 common shares of the Company that may be issued pursuant to the grant of stock options. The exercise price of stock options granted under the Plan shall be determined by the Company’s Board of Directors (the “Board”) but shall not be less than the volume-weighted, average trading price of the Company’s shares on the Toronto Stock Exchange (“TSX”) for the five (5) trading days immediately prior to the date of the grant. The expiry date of a stock option shall be the date so fixed by the Board subject to a maximum term of five (5) years.

The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. The compensation expense is amortized on a straight-line basis over the requisite service period, which approximates the vesting period.

The following is a summary of stock option activity during the three months ended March 31, 2019 and the year ended December 31, 2018:

	Shares			Weighted Average Exercise Price per Share
Options outstanding, December 31, 2017		2,600,001		$	0.54
Options forfeited		(75,000	)	$	0.29
Options expired		(200,000	)	$	1.48
Options outstanding, March 31, 2019 and December 31, 2018		2,325,001		$	0.46

During the three months ended March 31, 2019, the Company recognized $27 (2018 - $45) in stock-based compensation relating to the vesting of employee stock options.

The following table summarizes information about stock options outstanding and exercisable as at March 31, 2019:

Expiry Date	Number Outstanding		Number Exercisable		Remaining Contractual Life (years)		Exercise Price
September 8, 2020		430,000		430,000		1.44	$	0.58
November 30, 2021		365,000		243,332		2.67	$	0.66
March 20, 2022		400,002		266,668		2.97	$	0.65
October 20, 2022		1,129,999		376,666		3.56	$	0.29
		2,325,001		1,316,666		2.91

As at March 31, 2019, the aggregate intrinsic value of the outstanding exercisable options was $nil (December 31, 2018

–

$nil).

Warrants

As at March 31, 2019,

24,317,700

warrants were outstanding (December 31, 2018 – 24,317,700).

The following table summarizes information about share purchase warrants outstanding as at March 31, 2019:

Expiry Date	Number Outstanding		Remaining Contractual Life (years)		Exercise Price
June 8, 2020		10,000,000		1.19	$	0.7831
July 25, 2019 (1)		6,317,700		0.32	C$	2.0000
November 18, 2021		8,000,000		2.64	$	0.6650
		24,317,700		1.44

(1)

Non-tradable share purchase warrants.

In addition, as at March 31, 2019, the Company had 21,486 GQM LLC Warrants (Note 13(v)) outstanding, with each warrant entitling the holder to purchase a unit of GQM LLC for a period of five (5) years at an exercise price of $475.384 per unit.