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CAPITAL STOCK
9 Months Ended
Apr. 30, 2012
CAPITAL STOCK [Text Block]

NOTE 11: CAPITAL STOCK

Capital Stock

The Company’s capital stock at April 30, 2012 was 750,000,000 authorized common shares with a par value of $0.001 per share.

Equity Financing

On April 10, 2012, the Company completed a public offering of its common stock for net proceeds of $20,981,548 through the sale of 6,246,078 shares of the Company at a price of $3.60 per share.

Share Transaction

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 Debentures   72,703     3.18     3.18     213,955  
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                    
Mineral Property Acquisition   2,517,229     3.90     3.90     9,793,087  
Settlement of Accounts Payable   40,312     3.93     3.93     158,426  
Service Agreements   30,000     2.95     4.02     104,775  
Equity Financing   6,284,770     3.60     3.60     20,981,548  
Settlement of Convertible Debentures   55,805     3.93     3.96     314,113  
Options Exercised (2)   82,845     0.33     3.72     158,228  
Warrants Exercised   109,043     3.10     4.25     344,828  
Balance, April 30, 2012   84,795,155                    

  (1)

Options to purchase 55,000 shares were exercised on a cashless basis resulting in 19,027 net shares issued

  (2)

Options to purchase 60,000 shares were exercised on a cashless basis resulting in 15,220 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 April 30, 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     -  
Balance, October 31, 2011   1,128,020     6.59     2.49  
Exercised   (3,408 )   0.10     0.17  
Balance, January 31, 2012   1,124,612     6.60     2.24  
Issued   900,446     6.47     0.51  
Exercised   (109,043 )   3.16     1.52  
Expired   (93,376 )   5.52     -  
Balance, April 30, 2012   1,822,639   $ 6.79     1.54  

The aggregate intrinsic value (“AIV”) under the provisions of ASC 718 of the outstanding warrants at April 30, 2012 was estimated to be $975,000.

Stock Options

At April 30, 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 stock option grants under the Company’s Stock Option Plans for the three and nine months ended April 30, 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        
March 12, 2012 50,000 3.77 10 138,168 4 0.69% 0.00% 110.13%
Three months ended April 30, 2012 50,000     138,168        
Balance, April 30, 2012 1,175,000     $2,492,032        

The weighted average fair value per option granted under the Company’s Stock Option Plans during the nine months ended April 30, 2012 was $2.12.

In addition to the stock option grants presented in the above table, and as a result of the acquisition of Cue effective March 30, 2012, the Company issued the following options, which were not issued pursuant to, and are not subject to the terms and conditions of, the Company’s Stock Option Plans, in exchange for Cue stock options and broker options:

  • Stock options to purchase 48,748 shares of the Company exercisable at prices ranging from $5.13 to $23.08 per share until expiry from July 15, 2013 to August 3, 2016; and
  • Broker options to purchase 38,773 shares of the Company exercisable at a price of $3.59 per share until expiry on November 10, 2012.

A continuity schedule of outstanding stock options for the underlying common shares of the Company during the nine months ended April 30, 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  
Issued (3)   137,521     5.13     4.81  
Exercised   (127,625 )   2.70     7.64  
Forfeited   (17,500 )   4.35     9.26  
Balance, April 30, 2012   9,544,396   $ 1.94     6.70  

The AIV under the provisions of ASC 718 of all outstanding options at April 30, 2012 was estimated to be $10,811,058.

A summary of options outstanding and exercisable at April 30, 2012 is presented below:

    Options Outstanding     Options Exercisable  
Range of Exercise Prices   Outstanding at     Weighted Average     Exercisable at     Weighted Average  
    April 30, 2012     Exercise Price     April 30, 2012     Exercise Price  
$0.33 to $0.70   3,315,000   $ 0.40     3,315,000   $ 0.40  
$0.71 to $2.45   3,671,875     2.38     3,671,875     2.38  
$2.46 to $23.08 (3)   2,557,521     3.31     1,821,271     3.39  
    9,544,396   $ 1.94     8,808,146   $ 1.84  

(3) Options include 48,748 options and 38,773 broker options issued in connection with the acquisition of Cue, which were not issued pursuant to, and are not subject to the terms and conditions of, the Company’s Stock Option Plans

Stock Based Compensation

A summary of stock based compensation expense, which is included in general and administrative expenses, for the three and nine months ended April 30, 2012 and 2011 is presented below:

    Three Months Ended April 30,     Nine Months Ended April 30,  
    2012     2011     2012     2011  
                         
Stock Based Consulting                        
Common stock issued for consulting services $ 104,774   $ 166,777   $ 167,374   $ 708,747  
Options issued to consultants   135,032     374,686     711,249     1,455,151  
    239,806     541,463     878,623     2,163,898  
                         
Stock Based Management Fees                        
Options issued to management   -     -     834,219     2,079,707  
    -     -     834,219     2,079,707  
                         
Stock Based Wages and Benefits                        
Options issued to employees   182,543     282,950     1,021,833     1,521,907  
    182,543     282,950     1,021,833     1,521,907  
                         
Stock based compensation charged to inventory   (22,979 )   -     (153,993 )   -  
  $ 399,370   $ 824,413   $ 2,580,682   $ 5,765,512