CAPITAL STOCK

6 Months Ended

Jan. 31, 2012

CAPITAL STOCK [Text Block]

NOTE 11:            CAPITAL STOCK

Capital Stock

The Company’s capital stock at January 31, 2012 was 750,000,000 authorized common shares with a par value of $0.001 per share.

Share Transactions

Period / Description	Common Shares Issued		Value per Share				Issuance Value
			Low		High
Balance, July 31, 2011	73,487,337
Service Agreements	10,000	$	2.99	$	3.49	$	32,400
Mineral Property Acquisition	1,603,440		3.20		3.20		5,195,797
Database Acquisition	159,236		3.21		3.21		511,147
Balance, October 31, 2011	75,260,013
Mineral Property Acquisition	300,000		3.05		3.05		915,000
Service Agreements	10,000		3.00		3.04		30,200
Settlement of Convertible Debenture	72,703		3.18		3.18		231,195
Options Exercised (1)	29,027		0.45		2.78		4,500
Warrants Exercised	3,408		3.10		3.10		10,564
Balance, January 31, 2012	75,675,151

(1) 55,000 options were exercised on a cashless basis resulting in 19,027 net shares issued

Share Purchase Warrants

A continuity schedule of exercisable and outstanding share purchase warrants for the underlying common shares of the Company at January 31, 2012, and the changes during the period, is presented below:

	Number of	Weighted average	Weighted average remaining
	Warrants	exercise price	contractual term (years)
Balance, July 31, 2011	4,348,983	$ 3.57	0.79
Issued	375,834	16.30	1.16
Expired	(3,596,797)	(3.95)	n/a
Balance, October 31, 2011	1,128,020	6.59	2.49
Exercised	(3,408)	3.10	0.17
Balance, January 31, 2012	1,124,612	$ 6.60	2.24

The aggregate intrinsic value (“AIV”) under the provisions of ASC 718 of the outstanding warrants at January 31, 2012 was estimated to be $1,025,000.

Stock Options

At January 31, 2012, the Company has two Stock Option Plans as follows:

• 2006 Stock Option Plan, with 10,000,000 common shares available for issuance; and
• 2009 Stock Option Plan, with 7,000,000 common shares available for issuance.

A summary of the Company’s stock option grants for the three and six months ended January 31, 2012, using the Black Scholes pricing model, is presented below:

Date / Period	Options Issued		Exercise Price	Term (Years)		Fair Value	Expected Life (Years)	Risk-Free Interest Rate	Dividend Yield	Expected Volatility
August 18, 2011	15,000	$	3.15	10	$	32,998	4	0.61%	0.00%	102.50%
September 26, 2011	1,005,000		2.78	10		2,070,098	4	0.65%	0.00%	112.05%
Three months ended October 31, 2011	1,020,000					2,103,096
November 2, 2011	10,000		3.15	10		20,823	4	0.63%	0.00%	94.77%
November 3, 2011	15,000		3.34	10		34,991	4	0.65%	0.00%	102.47%
November 7, 2011	20,000		3.21	10		47,606	4	0.63%	0.00%	112.23%
January 10, 2012	10,000		3.05	10		20,605	4	0.53%	0.00%	97.83%
January 16, 2012	50,000		3.43	10		126,743	4	0.57%	0.00%	111.71%
Three months ended January 31, 2012	105,000					250,768
Balance, January 31, 2012	1,125,000				$	2,353,864

The weighted average fair value per option granted during the six months ended January 31, 2012 was $2.09.

A continuity schedule of outstanding stock options for the underlying common shares of the Company during the six months ended January 31, 2012 is presented below:

	Number of Stock			Weighted Average		Weighted Average
	Options			Exercise Price		Remaining Contractual
						Term (Years)
Balance, July 31, 2011	8,579,750		$	1.79		7.40
Issued	1,020,000			2.79		9.92
Forfeited	(4,500	)		(2.43	)	(9.00	)
Balance, October 31, 2011	9,595,250			1.91		7.44
Issued	105,000			3.31		10.00
Exercised	(65,000	)		(2.23	)	(8.26	)
Forfeited	(83,250	)		(3.04	)	(9.26	)
Balance, January 31, 2012	9,552,000		$	1.91		6.99

The AIV under the provisions of ASC 718 of all outstanding options at January 31, 2012 was estimated to be $11,717,623.

A summary of options outstanding and exercisable at January 31, 2012 is presented below:

	Options Outstanding			Options Exercisable
Range of Exercise Prices	Outstanding at		Weighted Average	Exercisable at		Weighted Average
	January 31, 2012		Exercise Price	January 31, 2012		Exercise Price
$0.33 to $0.95	3,380,000	$	0.41	3,380,000	$	0.41
$1.50 to $2.49	3,747,000		2.40	3,517,500		2.39
$2.52 to $6.05	2,425,000		3.25	1,572,500		3.35
	9,552,000	$	1.91	8,470,000	$	1.78

Stock Based Compensation

A summary of stock based compensation expense, which is included in general and administrative expenses, for the three and six months ended January 31, 2012 and 2011 is presented below:

		Three Months Ended January 31,					Six Months Ended January 31,
		2012			2011		2012			2011
Stock Based Consulting
Common stock issued for consulting services	$	30,200		$	298,746	$	62,600		$	487,970
Options issued to consultants		334,581			595,143		576,215			1,134,465
		364,781			893,889		638,815			1,622,435
Stock Based Management Fees
Options issued to management		-			289,681		834,219			2,079,707
		-			289,681		834,219			2,079,707
Stock Based Wages and Benefits
Options issued to employees		310,818			419,973		839,290			1,238,957
		310,818			419,973		839,290			1,238,957
Stock based compensation charged to inventory		(607	)		-		(131,012	)		-
	$	674,992		$	1,603,543	$	2,181,312		$	4,941,099

For the three and six months ended January 31, 2012, stock-based compensation of $607 and $131,012 was charged to inventory (three and six months ended January 31, 2011: $nil) respectively.