Derivative Liability

3 Months Ended

Jul. 31, 2012

Derivative Liability [Text Block]

9.

Derivative Liability

Derivative liability consists of the convertible debenture issued on December 28, 2011, which became convertible on June 25, 2012.   On June 25, 2012, the fair value of the derivative liability was $47,500 and was determined using the Black-Scholes option pricing model using the following assumptions: expected volatility of 187%, risk-free rate of 0.10%, expected dividend yield of 0%, and expected life of 0.27 years.  At July 31, 2012, the fair value of the derivative liability is $78,757 and was determined using the Black-Scholes option pricing model, using the following assumptions: expected volatility of 377%, risk-free interest rate of 0.09%, expected dividend yield of 0% and expected life of 0.17 years.  The loss on the change in fair value of the derivative liability is $31,257.