Note 5 - Stock Options

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

5 . STOCK OPTIONS  

On

September 30, 2019,

the Company adopted Rolling Stock Option Plan. Up to

10%

of the Company's issued and outstanding common shares

may

be reserved for granting of stock options.

During the period ended

September 30, 2020,

the Company granted

3,600,000

stock options to consultants, directors and officers exercisable into

3,600,000

shares at an exercise price of

$0.35CND

and an expiry date of

July 21, 2023.

The options have a fair value of

$909,900CND,

calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of

125%;

(ii) Term of

3

years; (iii) Discount rate of

0.27%;

(iv) Dividend rate of

Nil;

and (v) market stock price of

$0.35.

The options vest

20%

every

6

months starting

January 21, 2020.

During the period ended

September 30, 2020,

the Company recorded

$160,990CND

(

$120,098US

) of stock-based compensation relating to the vesting period.