Warrants and Options to Purchase Common Stock

9 Months Ended

Jan. 31, 2015

Other Liabilities Disclosure [Abstract]

Warrants and Options to Purchase Common Stock

NOTE 6- WARRANTS AND OPTIONS TO PURCHASE COMMON STOCK

The following is a summary of the Company’s warrants outstanding:

	Shares	Weighted Average Exercise Price	Expiration Date
Outstanding at April 30, 2013	1,727,948	$                  0.67
Issued - October 4, 2013	2,161,600	0.50	October 4, 2014
Balance outstanding at April 30, 2014	3,889,548	$                  0.62
Expired - June 18, ,2014	(833,334)	(0.75)
Issued - July 29, 2014	1,614,400	0.23	July 29, 2019
Expired - October 4, 2014	(2,161,600)	(0.50)
Expired - January 18, 2015	(894,614)	(0.80)
Balance outstanding at January 31, 2015	1,614,400	$                  0.23

Issue Date	Warrants	Exercise price	Expiration Date
July 29, 2014	1,614,400	0.23	July 29, 2019
	1,614,400	$                   0.23

The composition of the Company’s warrants outstanding at January 31, 2015, is as follows:

Options issued for mining interests

In consideration for mining interests on several properties (see Note 4), the Company is obligated to issue a total of 400,000 stock options based on "fair market price" which for financial statement purposes is considered to be the closing price of the Company's common stock on the issue dates.

The Company has estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions:

	For the three and nine months ended
	January 31, 2015	January 31, 2014
Options issued	25,000	25,000
Weighted Average volatility	313.2%	356.10%
Expected term (years)	10	10
Risk free rate	1.77%	2.67%

The following is a summary of the Company’s options issued and outstanding in conjunction with certain mining interest agreements on several properties for the three and nine months ended January 31, 2015 and January 31, 2014, respectively:

	For the three and nine months ended		For the three and nine months ended
	January 31, 2015		January 31, 2014
	Shares	Price (a)	Shares	(Price (a)
Beginning balance, outstanding	325,000	$                   0.36	300,000	$                   0.36
Issued	25,000	0.12	25,000	0.20
Exercised	-	-	-	-
Expired	-	-	-	-
Balance outstanding	350,000	$                   0.34	325,000	$                   0.35

^(a) Weighted average exercise price per share.

Future remaining stock option obligations under the terms of property agreements detailed in Note 5 are as follows:

Fiscal year ending April 30,	Stock options
2016	25,000
2017	25,000
	50,000

Options issued for consulting services

As per an agreement with Terre Partners, a limited liability company, fully executed on October 3, 2012, in consideration for consulting and advisory services rendered, the Company is obligated to issue a total of 1,000 stock options based on 5 day variable weighted-average price (VWAP) at the end of each month of the associated consulting contract. The consultant options vest on the first day of the following month of service and are exercisable for a period of three months following the termination of the agreement. The Company has estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions:

	For the nine months ended
	January 31, 2015	January 31, 2015
Options issued	9,000	9,000
Weighted average volatility	223.6% to 279.4%	279.9% to 366.6%
Expected term (years)	1	1
Risk-free rate	.10% to 25%	0.10% to 0.15%

	For the three months ended		For the three months ended
	January 31, 2015		January 31, 2014
	Shares	Price (a)	Shares	Price (a)
Beginning balance, outstanding	12,000	$                   0.34	12,000	$                   0.44
Issued	3,000	0.14	3,000	0.29
Exercised	-	-	-	-
Expired	(3,000)	(0.29)	(3,000)	(0.47)
Balance outstanding	12,000	$                   0.21	12,000	$                   0.40

The following is a summary of the Company’s options issued and outstanding associated with certain consulting agreements:

	For the nine months ended		For the nine months ended
	January 31, 2015		January 31, 2014
	Shares	Price (a)	Shares	Price (a)
Beginning balance, outstanding	12,000	$                  0.34	8,000	$                   0.46
Issued	9,000	0.21	9,000	0.38
Exercised	-	-	-	-
Expired	(9,000)	(0.38)	(5,000)	(0.47)
Balance outstanding	12,000	$                   0.21	12,000	$                   0.40
(a) Weighted average exercise price per share

Total charged against operations under the option grants for consulting services was $585 and $1,109 for the three months ended January 31, 2015 and 2014, respectively. Total charged against operations under the option grants for consulting services was $1,237 and $2,250 for the nine months ended January 31, 2015 and 2014, respectively. These costs are classified as management and administrative expense.

Options issued under the 2011 Stock Option/Restricted Plan

On May 22, 2013 the Board of Directors authorized the grant of 675,000 options to purchase shares of common stock of the Company to various directors, officers and consultants. The options have an exercise price of $0.29 based on the closing price of the Company’s common stock on the date of grant and vest over one year.

On February 13, 2014, the Board of Directors authorized the grant of 350,000 options to purchase shares of common stock of the Company to a director. These options have an exercise price of $0.28 based on the closing price of the Company’s common stock on the date of grant and vest over one year.

The fair value of each option award was estimated on the date of the grant using the information and assumptions noted in the following table:

	For the three and nine months ended
	January 31, 2015	January 31, 2014
Options issued	-	675,000
Expected volatility	N/A	305.3%
Expected term (years)	N/A	3.1%
Risk-free rate	N/A	0.11%

No options were issued or exercised during the three months and nine months ended January 31, 2015.

The following is a summary of the Company’s options issued and outstanding in conjunction with the Company’s Stock Option Plan:

	For the three months ended		For the three months ended
	January 31, 2015		January 31, 2014
	Shares	Price (a)	Shares	Price (a)
Beginning balance, outstanding	3,235,000	$                   0.38	2,885,000	$                   0.40
Issued	-		-	-
Exercised	-	-	-	-
Forfeited or rescinded	-	-	-	-
Balance outstanding	3,235,000	$                   0.38	2,885,000	$                   0.40

	Nine months ended		Nine months ended
	January 31, 2015		January 31, 2014
	Shares	Price (a)	Shares	Price (a)
Beginning balance, outstanding	3,235,000	$                   0.38	2,215,000	$                   0.43
Issued	-	-	675,000	0.29
Exercised	-	-	-	-
Forfeited or rescinded	-	-	(5,000)	(0.78)
Balance outstanding	3,235,000	$                   0.38	2,885,000	$                   0.40

^(a) Weighted average exercise price per shares

The following table summarizes additional information about the options under the Company’s Stock Option Plan as of January 31, 2015:

	Options outstanding			Options exercisable
Date of Grant	Shares	Price (a)	Life	Shares	Price (a)
May 27, 2011	283,333	$               0.90	6.08	283,333	$                 0.90
May 22, 2012	226,667	0.78	7.31	226,667	0.78
June 18, 2012	1,700,000	0.30	7.38	1,700,000	0.30
May 22, 2013	675,000	0.29	8.31	675,000	0.29
February 13, 2014	350,000	0.28	9.04	262,500	0.28
Total options	3,235,000	$               0.38	7.65	3,147,500	$                 0.38

^(a) Weighted average exercise price per shares

The total value of the Plan stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of January 31, 2015, there is no unrecognized compensation cost related to stock-based options and awards.

The average remaining contractual term of the options both outstanding and exercisable at January 31, 2015 was 7.65 years.

Total compensation charged against operations under the plan for employees and advisors was $24,365 and $48,937 for the three months ended January 31, 2015 and 2014, respectively. Total compensation charged against operations under the plan for employees and advisor was $104,044 and $179,105 for the nine months ended January 31, 2015 and 2014, respectively. These costs are classified under management and administrative expense.

The following is a summary of the Company’s stock options outstanding and vested:

	Shares	Weighted Average Exercise Price	Expiration Date
Options issued for mining interests	350,000	$                   -	April 11, 2019 through January 15, 2023
Options issued for consulting services	12,000	0.25	November 1, 2014 through October 1 , 2015
Options issued under the 2011 Stock Option/Restricted Plan	3,235,000	0.38	May 30, 2021 through February 13, 2024
Outstanding at October 31, 2014	3,597,000	$             0.34
Total vested stock options	3,509,500

The aggregate intrinsic value of all options vested and exercisable at January 31, 2015, was $770 based on the Company's closing price of $0.12 per common share at January 31, 2015. The Company's current policy is to issue new shares to satisfy option exercises.