NOTE 9 - STOCK OPTIONS

9 Months Ended

Jan. 31, 2020

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS

Options issued for mining interest

In consideration for its mining interest (see Note 4), the Company was obligated to issue stock options to purchase shares of the Company’s common stock 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. Those costs are capitalized as Mining Interest (Note 4).

For the nine months ended January 31, 2020, there were 500,000 options issued for mining interest at the exercise price of $0.04 per share. For the three months ended January 31, 2020 there were no options issued for mining interest. During the nine months ended January 31, 2020, the Company repriced 435,000 existing options to purchase Company common stock, to the exercise price of $0.04 per share, from exercise prices ranging from $0.05 to $0.80. The fair value of the issuance and repricing was $16,044. For the three moths ended January 31, 2020, there were no options issued for mining interest.

On January 16, 2019, the Company issued 45,000 stock options for mining interests with fair value of $2,250.  

Options outstanding for mining interest totaled 435,000 at April 30, 2019 and 935,000 options at January 31, 2020 and are fully vested. As of January 31, 2020, the remaining weighted average term of the option grants for mining interest was 4.59 years. As of January 31, 2020, the weighted average exercise price of the option grants for mining interest was $0.04 per share.

Options issued under the 2011 Stock Option/Restricted Stock Plan

The Company established the 2011 Stock Option/Restricted Stock Plan. The Stock Option Plan is administered by the Board of Directors and provides for the grant of stock options to eligible individual including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction.

The Stock Option Plan has a fixed maximum percentage of 10% of the Company’s outstanding shares that are eligible for the plan pool, whereby the number of Shares under the plan increases automatically increases as the total number of shares outstanding increase. The number of shares subject to the Stock Option Plan and any outstanding awards will be adjusted appropriately by the Board of Directors if the Company’s common stock is affected through a reorganization, merger, consolidation, recapitalization, restructuring, reclassification dividend (other than quarterly cash dividends) or other distribution, stock split, spin-off or sale of substantially all of the Company’s assets.

The Stock Option plan also has terms and conditions, including without limitations that the exercise price for stock options granted under the Stock Option Plan must equal the stock’s fair value, based on the closing price per share of common stock, at the time the stock option is granted. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes model and commonly utilized assumptions associated with the Black-Scholes methodology. Options granted under the Plan have a ten-year maximum term and varying vesting periods as determined by the Board.

The total value of stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of January 31, 2020 and 2019, respectively, there was no unrecognized compensation cost related to stock-based options and awards. No options were issued under the 2011 Plan during the three and nine months ended January 31, 2020 and 2019, respectively.

The following table summarizes additional information about the options under the Company’s Stock Option Plan as of January 31, 2020:

	Options outstanding and exercisable
Date of Grant	Shares		Price	Remaining Term
October 18, 2016	4,810,000	$	0.06	1.72
April 30, 2018	1,400,000		0.065	3.25
Total options	6,210,000	$	0.06	2.06

Summary:

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

Options issued for:	Expiration Date	Options		Weighted Average Exercise Price
Mining interests	April 11, 2020 to January 15, 2029		935,000	$	0.04
Stock option plan	October 18, 2021 to April 30, 2023		6,210,000		0.06
Outstanding and exercisable at January 31, 2020			7,145,000	$	0.06

The aggregate intrinsic value of all options vested and exercisable at January 31, 2020, was $Nil based on the Company’s closing price of $0.03 per common share at January 31, 2020. The Company’s current policy is to issue new shares to satisfy option exercises.