Warrants

6 Months Ended

Jul. 31, 2014

Warrants [Text Block]

NOTE 5 – Warrants

As of July 31, 2014, there were 65,366,708 whole share purchase warrants outstanding and 65,366,708 exercisable. The warrants have a weighted average remaining life of 1.52 years and a weighted average exercise price of $0.025 per whole warrant for one common share. The warrants had an aggregate intrinsic value of $13,397 as of July 31, 2014.

Warrants issued in private placement outstanding at July 31, 2014 is as follows:

			Weighted
	Number of whole share		average exercise
	purchase warrants		price per share
Outstanding, January 31, 2014	58,441,729	$	0.026
Issued	6,924,979		0.017
Expired	-		-
Exercised	-		-
Outstanding, July 31, 2014	65,366,708	$	0.025
Exercisable, July 31, 2014	65,366,708	$	0.025

During the six months ended July 31, 2014, the Company issued 500,000 warrants to a designee of MBGS, LLC, pursuant to a settlement agreement with Northern Dynasty which discharged the $3,730,174 principal balance and $1,592,769 of accrued interest for the 2010 Convertible Note (See Note 7). The warrants were fully vested upon issuance, have an exercise price of $0.028 and have a three year term. The company expensed $6,440, the fair value of the warrant issued upon issuance.

During the six months ended July 31, 2014, the Company also issued 6,424,979 warrants to three investors at exercise prices ranging from $0.015 to $0.028 and have a three year term.