STOCK OPTIONS AND WARRANTS

12 Months Ended

Apr. 30, 2014

STOCK OPTIONS AND WARRANTS [Text Block]

12. STOCK OPTIONS AND WARRANTS

2013 Stock Incentive Plan - Effective June 20, 2013, the Company adopted the 2013 Stock Incentive Plan (the “2013 Plan"). The 2013 Plan allows the Company to grant certain options to its directors, officers, employees and eligible consultants. A total of 27,800,000 shares of the Company’s common stock are available for issuance under the 2013 Plan. However, the Company may increase the maximum aggregate number of shares of the Company’s common stock that may be optioned and sold under the 2013 Plan provided the maximum aggregate number of shares of common stock that may be optioned and sold under the 2013 Plan shall at no time be greater than 15.0% of the total number of shares of common stock outstanding.

On October 29, 2013, the Company granted non-qualified stock options under the 2013 Plan for the purchase of 18,100,000 shares of common stock at $0.03 per share. The nonqualified stock options were granted to various officers, directors and consultants, are fully vested and expire October 29, 2018. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a bond equivalent yield of 1.29%, volatility of 298%, estimated life of 5 years and closing stock price of $0.03 per share on the date of grant.

On April 16, 2014, the Company granted non-qualified stock options under the 2013 Plan for the purchase of 1,500,000 shares of common stock at $0.05 per share. The nonqualified stock options were granted to one consultant, are fully vested and expire April 16, 2019. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a bond equivalent yield of 1.67%, volatility of 290%, estimated life of 5 years and closing stock price of $0.05 per share on the date of grant.

From the date of inception through April 30, 2014, compensation expense related to the granting of stock options under the 2013 Plan was $571,972, of which $89,915 was recorded in minerals exploration and evaluation expenses, $128,391 was recorded in general and administrative and $353,666 was recorded in general and administrative – related parties. The Company calculated the value of the options using the Black-Scholes option pricing model. As of April 30, 2014, zero options under the 2013 Plan have been exercised.

2011 Stock Incentive Plan - On September 7, 2010, the Company adopted the 2011 Stock Incentive Plan (the “2011 Plan"). The 2011 Plan allowed the Company to grant certain options to its directors, officers, employees and eligible consultants. A total of 16,700,000 shares of the Company’s common stock were available for issuance under the 2011 Plan. However, the Company could increase the maximum aggregate number of shares of the Company’s common stock that may be optioned and sold under the 2011 Plan provided the maximum aggregate number of shares of common stock that may be optioned and sold under the 2011 Plan shall at no time be greater than 15.0% of the total number of shares of common stock outstanding.

On September 7, 2010, the Company granted non-qualified stock options under the 2011 Plan for the purchase of 6,000,000 shares of common stock at $0.02 per share. The nonqualified stock options were granted to various officers, directors and consultants, are fully vested and expire September 6, 2014. As of April 30, 2014, zero options under the 2011 Plan have been exercised.

On June 20, 2013, the Company suspended the 2011 Plan. No new options may be granted under the 2011 Plan and the 2011 Plan will be terminated once all outstanding options granted under the 2011 Plan have been exercised, expired or otherwise terminated. There are presently 6,000,000 options outstanding under the 2011 Plan.

From the date of inception through April 30, 2014, compensation expense related to the granting of stock options under the 2011 Plan was $178,159 and was included in general and administrative expense. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a bond equivalent yield of 0.77%, volatility of 240%, estimated life of 4 years and closing stock price of $0.03 per share on the date of grant.

2010 Stock Incentive Plan - On December 7, 2009, the Company adopted the 2010 Stock Incentive Plan (the “2010 Plan"). The 2010 Plan allowed the Company to grant certain options to its directors, officers, employees and eligible consultants. A total of 10,000,000 shares of the Company’s common stock were available for issuance under the 2010 Plan. However, the Company could increase the maximum aggregate number of shares of the Company’s common stock that may be optioned and sold under the 2010 Plan provided the maximum aggregate number of shares of common stock that may be optioned and sold under the 2010 Plan shall at no time be greater than 12.5% of the total number of shares of common stock outstanding.

On December 8, 2009, the Company granted non-qualified stock options under the 2010 Plan for the purchase of 7,000,000 shares of common stock at $0.05 per share. The nonqualified stock options were granted to various officers, directors and consultants, were fully vested and expired December 7, 2011. As of the expiration date, 1,000,000 options had been exercised and 6,000,000 options expired under the 2010 Plan.

On September 7, 2010, the Company suspended the 2010 Plan. On December 7, 2011, the 2010 Plan was terminated.

Compensation expense related to the granting of stock options under the 2010 Plan was $391,478 and was included in general and administrative expense. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a risk-free rate of 1.00%, volatility of 252%, estimated life of 2 years and closing stock price of $0.06 per share on the date of grant.

2009 Stock Incentive Plan - On January 12, 2009, the Company adopted the 2009 Stock Incentive Plan (the “2009 Plan"). The 2009 Plan allowed the Company to grant certain options to its directors, officers, employees and eligible consultants. A total of 5,000,000 shares of the Company’s common stock were available for issuance under the 2009 Plan.

On January 16, 2009, the Company granted non-qualified stock options under the 2009 Plan for the purchase of 5,000,000 shares of common stock at $0.05 per share. The nonqualified stock options were granted to various officers, directors and consultants, were fully vested and expired January 15, 2011. As of the expiration date, 2,450,000 options had been exercised and 2,550,000 options expired under the 2009 Plan.

On December 7, 2009, the Company suspended the 2009 Plan. On January 15, 2011, the 2009 Plan was terminated.

Compensation expense related to the granting of stock options under the 2009 Plan was $342,550 and was included in general and administrative expense. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a risk-free rate of 1.00%, volatility of 316%, estimated life of 2 years and closing stock price of $0.07 per share on the date of grant.

2008 Stock Incentive Plan - On February 1, 2008, the Company adopted the 2008 Stock Incentive Plan (the “2008 Plan"). The 2008 Plan allowed the Company to grant certain options to its directors, officers, employees and eligible consultants. A total of 4,600,000 shares of the Company’s common stock were available for issuance under the 2008 Plan.

On February 1, 2008, the Company granted non-qualified stock options under the 2008 Plan for the purchase of 4,340,000 shares of common stock at $0.74 per share. The nonqualified stock options were granted to various officers, directors and consultants, were fully vested and expired January 31, 2010. All 4,340,000 stock options expired without exercise.

On January 12, 2009, the Company suspended the 2008 Plan. On January 31, 2010, the 2008 Plan was terminated.

Compensation expense related to the granting of stock options under the 2008 Plan was $3,583,702 and was included in general and administrative expense. The Company calculated the value of the options using the Black-Scholes option pricing model using the following assumptions: a risk-free rate of 4.50%, volatility of 107%, estimated life of 2 years and closing stock price of $1.22 per share on the date of grant.

The following is a summary of option activity during the years ended April 30, 2014 and 2013:

			Weighted
			Average Exercise
	Number of Shares		Price
Balance, April 30, 2012	6,000,000	$	0.02
Options granted and assumed	-		0.00
Options expired	-		0.00
Options exercised	-		0.00
Balance, April 30, 2013	6,000,000		0.02
Options granted and assumed	19,600,000		0.03
Options expired	-		0.00
Options exercised	-		0.00
Balance, April 30, 2014	25,600,000	$	0.03

As of April 30, 2014, all stock options outstanding are exercisable.

Stock Warrants –

On July 2, 2013, the Company extended the expiration dates of the following warrants:

a)	23,020,000 warrants previously issued on July 13, 2011 from an expiration date of July 12, 2013 to July 12, 2014. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share; and
b)	1,000,000 warrants previously issued on September 26, 2011, from an expiration date of September 25, 2013 to September 25, 2014. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share.

On January 16, 2014, the Company extended the expiration dates of the following warrants:

a)	22,476,840 warrants previously issued on February 24 2009, from an expiration date of February 23, 2014 to February 23, 2015. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share;
b)	11,455,500 warrants previously issued on January 31, 2010, from an expiration date of January 30, 2014 to January 30, 2015. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share;
c)	32,070,000 warrants previously issued on January 18, 2011, from an expiration date of January 17, 2014 to January 17, 2015. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share; and
d)	11,742,789 warrants previously issued on January 30, 2012, from an expiration date of January 29, 2014 to January 29, 2015. Each warrant entitles the holder to purchase an additional share of our common stock at a price of $0.10 per share.

The following is a summary of warrants activity during the years ended April 30, 2014 and 2013:

				Weighted
				Average Exercise
	Number of Shares			Price
Balance, April 30, 2012	103,095,129		$	0.10
Warrants granted and assumed	100,000			0.10
Warrants canceled	-			0.00
Warrants expired	-			0.00
Balance, April 30, 2013	103,195,129			0.10
Warrants granted and assumed	27,220,000			0.10
Warrants canceled	-			0.00
Warrants expired	(1,030,000	)		0.10
Balance, April 30, 2014	129,385,129		$	0.10

All warrants outstanding as of April 30, 2014 are exercisable.