STOCK OPTIONS AND WARRANTS

3 Months Ended

Nov. 30, 2019

Notes to Financial Statements [Abstract]

STOCK OPTIONS AND WARRANTS [Text Block]

7.	STOCK OPTIONS AND WARRANTS
	Stock Options
	On July 15, 2014, the shareholders approved and adopted at the Annual General Meeting the Company's 2014 Stock Option Plan. On April 14, 2011, the shareholders approved and adopted at the Annual General Meeting to consolidate the Company's 2007 Equity compensation plan and the Company's 2010 Equity Compensation Plan into a new Company 2011 Stock Option Plan. The purpose of these Plans is to advance the interests of the Corporation, through the grant of Options, by providing an incentive mechanism to foster the interest of eligible persons in the success of the Corporation and its affiliates; encouraging eligible persons to remain with the Corporation or its affiliates; and attracting new Directors, Officers, Employees and Consultants.
	For the three-month period ended November 30, 2019, the Company recorded $ (November 30, 2018 - $) stock based compensation expenses.
	A summary of the changes in stock options for the three months ended November 30, 2019 is presented below:

				Options Outstanding
				Weighted Average
	Number of Shares			Exercise Price
Balance, August 31, 2018	8,570,000		$	0.07
Expired	(250,000	)		0.06
Balance, August 31, 2019	8,320,000		$	0.07
Expired	(1,000,000	)		0.10
Balance, November 30, 2019	7,320,000		$	0.07

The Company has the following options outstanding and exercisable.

November 30, 2019

	Options outstanding and exercisable
	Number	Remaining
Exercise prices	of shares	contractual life
$0.07	550,000	3.48 years
$0.06	535,000	3.45 years
$0.05	800,000	2.91 years
$0.10	500,000	2.42 years
$0.07	1,500,000	2.17 years
$0.07	1,535,000	2.14 years
$0.07	800,000	1.81 years
$0.05	1,100,000	0.90 years
	7,320,000	2.22 years

August 31, 2019

	Options outstanding and exercisable
	Number	Remaining
Exercise prices	of shares	contractual life
$0.07	550,000	3.73 years
$0.06	535,000	3.70 years
$0.05	800,000	3.16 years
$0.10	500,000	2.67 years
$0.07	1,500,000	2.42 years
$0.07	1,535,000	2.39 years
$0.07	800,000	2.05 years
$0.05	1,100,000	1.15 years
$0.10	1,000,000	0.18 years
	8,320,000	2.38 years

                      *The aggregate intrinsic value for options outstanding and exercisable as at November 30, 2019 was $Nil.

Warrants

During the year ended August 31, 2019, the Company issued 7,731,769 warrants attached to units in private placements and 705,100 broker warrants in connection with the private placements. The fair value of the brokers warrants was $12,861, recorded as share issuance costs off-setting the gross proceeds of private placements in additional-paid-in-capital, and was calculated using the Black Scholes option pricing model, with the following weighted average assumptions: expected volatility 150%, risk-free interest rate: 2.38%, expected life: 3.71 years, dividend yield: 0.00%.

A summary of warrants as at November 30, 2019 and August 31, 2019 is as follows:

				Warrants Outstanding
				Weighted Average
	Number of warrants			Exercise Price
Balance, August 31, 2018	40,739,060		$	0.06
Expired	(23,034,470	)		0.07
Issued	8,436,869			0.04
Balance, August 31, 2019	26,141,459		$	0.06
Expired	(2,600,000	)		0.07
Balance, November 30, 2019	23,541,459		$	0.05

Number		Exercise	Expiry
Outstanding1		Price	Date
6,009,369	$	0.040	March 27, 2023
2,427,500	$	0.050	September 21, 2021
4,800,000	$	0.050	August 31, 2021
2,540,000	$	0.075	May 25, 2020
1,891,590	$	0.075	May 11, 2020
1,688,600*	$	0.060	January 12, 2020
4,184,400*	$	0.060	December 8, 2019
23,541,459

1. Each warrant entitles a holder to purchase one common share.

*      Expired subsequent to the period end.