XML 20 R11.htm IDEA: XBRL DOCUMENT

Stock Options

9 Months Ended

Jan. 31, 2016

NOTE 6- STOCK OPTIONS

Options issued for mining interest

In consideration for mining interests (see Note 4), the Company is obligated to issue stock options with exercise prices 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, 2016		January 31, 2015
Options issued		25,000		25,000
Exercise price	$	0.06	$	0.12
Volatility		359.7%		313.2%
Weighted average life remaining		0.46		0.46
Risk free rate		1.94%		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 nine months ended January 31, 2016 and January 31, 2015, respectively:

	For the three and nine months ended January 31,
	2016				2015
		Options	Price (a)		Options		Price (a)
Beginning balance		350,000	$	0.34		325,000	$	0.36
Issued		25,000		0.06		25,000		0.12
Exercised		-		-		-		-
Expired		-		-		-		-
Ending balance		375,000	$	0.32		350,000	$	0.34

^(a) Weighted average exercise price.

Fair value of the option grants for mining interests for the three and nine months ended January 31, 2016 and 2015, was $1,500 and $3,000, respectively. These costs are capitalized as Mining Interests (Note 4).

Options issued for consulting services

As per an agreement 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 stock options have a term of 1 year. The consultant options vest on the first day of the following month of service and are exercisable for a period of nine 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 three months ended January 31,
	2016		2015
Options issued		3,000		3,000
Weighted average exercise price	$	0.10	$	0.14
Weighted average volatility		451.6% to 458.4%		223.6% to 279.4%
Weighted average life remaining		0.54		0.54
Expected term (years)		1		1
Risk free rate		0.37% to 0.61%.		0.10% to 0.25%

	For the nine months ended January 31,
	2016		2015
Options issued		9,000		9,000
Weighted average exercise price	$	0.09	$	0.38
Weighted average volatility		244.4% to 307.6%		223.6% to 279.4%
Weighted average life remaining		0.54		0.54
Expected term (years)		1		1
Risk free rate		0.25% to 0.28%.		0.10% to 0.25%

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

	For the three months ended January 31,
	2016				2015
		Options	Price (a)		Options		Price (a)
Beginning balance		12,000	$	0.34		12,000	$	0.34
Issued		3,000		0.10		3,000		0.14
Exercised		-				-		-
Expired		(3,000)		(0.24)		(3,000)		(0.29)
Ending balance		12,000	$	0.10		12,000	$	0.21

^(a) Weighted average exercise price.

	For the nine months ended January 31,
	2016				2015
		Options	Price (a)		Options		Price (a)
Beginning balance		12,000	$	0.34		12,000	$	0.34
Issued		9,000		0.09		9,000		0.21
Exercised		-				-		-
Expired		(9,000)		(0.17)		(9,000)		(0.38)
Ending balance		12,000	$	0.10		12,000	$	0.21

^(a) Weighted average exercise price

Total charged against operations under the option grants for consulting services was $300 and $585, for the three months ended January 31, 2016 and 2015, respectively. Total charged against operations under the option grants for consulting services was $785 and $1,237, for the nine months ended January 31, 2016 and 2015, respectively. These costs are classified as management and administrative expense.

Options issued under the 2011 Stock Option/Restricted Plan

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 and nine months ended January 31, 2016				For the three and nine months ended January 31, 2015
		Options	Price (a)		Options		Price (a)
Beginning balance		2,696,667	$	0.37		3,235,000	$	0.38
Issued		-		-		-		-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Ending balance		2,696,667	$	0.37		3,235,000	$	0.38

^(a) Weighted average exercise price.

The following table summarizes additional information about the options under the Company’s Stock Option Plan as of January 31, 2016:

	Options outstanding			Options exercisable
Date of Grant	Number	Price (a)	Life	Number	Price (a)

May 27, 2011	200,000	$ 0.90	5.58	200,000	$ 0.90
May 22, 2012	146,667	0.78	6.40	146,667	0.78
June 18, 2012	1,350,000	0.30	6.64	1,350,000	0.30
May 22, 2013	650,000	0.29	7.57	650,000	0.29
February 13, 2014	350,000	0.28	8.30	350,000	0.28
Total options	2,696,667	$ 0.37	6.73	2,696,667	$ 0.37

^(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, 2016, there was no unrecognized compensation cost related to stock-based options and awards.

Total compensation charged against operations under the plan for employees and advisors was $Nil and $24,365 for the three months ended January 31, 2016 and 2015, respectively. Total compensation charged against operations under the plan for employees and advisors was $Nil and $104,044 for the nine months ended January 31, 2016 and 2015, respectively. These costs are classified under management and administrative expense.

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

	Options	Weighted average exercise price		Expiration date

Options issued for mining interests	375,000	$	0.32	April 11, 2019 through January 15, 2026
Options issued for consulting services	12,000		0.10	February 1, 2016 through December 31, 2016
Options issued under the 2011 Stock Option/Restricted Plan	2,696,667		0.37	May 27, 2021 through February 13, 2024
Total vested stock options	3,083,667	$	0.36

The aggregate intrinsic value of all options vested and exercisable at January 31, 2016, was $Nil based on the Company's closing price of $0.06 per common share at January 31, 2016. The Company's current policy is to issue new shares to satisfy option exercises.