Share Capital

9 Months Ended

Sep. 30, 2014

Share Capital [Text Block]

7. Share Capital

(a) Common Stock

During the first quarter 2014, the Company shareholders approved a change of jurisdiction of incorporation from Canada to the United States (the “Domestication”). As a result, the Company became Revett Mining Company, Inc., a Delaware corporation. As a result of this change, a par value of $0.01 was established for shares of common stock which previously had no par value. The Company has one class of $0.01 par value common stock of which 100,000,000 are authorized for issue. The holders of common stock are entitled to receive dividends without restriction when and if declared by the board of directors. Holders of the Company’s common stock are not entitled to preemptive rights to acquire additional shares of common stock and do not have cumulative voting rights.

During the nine months ended September 30, 2014, the Company issued 158,500 common shares on exercise of stock options for cash proceeds of $79 thousand, issued 4,499,100 common shares on sale of common shares through a private placement for cash proceeds of $3.3 million and issued 20,000 common shares for compensation with a fair value of $16 thousand.

During the nine months ended September 30, 2013, the Company issued 49,000 common shares on exercise of stock options and 55,000 common shares on exercise of warrants for cash proceeds of $0.12 million.

(b) Preferred Stock

The Company is authorized to issue 25,000,000 shares with a $0.01 par value of preferred stock. The Company’s board of directors is authorized to create any series and, in connection with the creation of each series, to fix by resolution the number of shares of each series, and the designations, powers, preferences and rights; including liquidation, dividends, conversion and voting rights, as they may determine. At September 30, 2014, no preferred stock was issued or outstanding.

(c) Stock options

The Company’s Equity Incentive Plan authorizes the Company to reserve and have available for issue, 6,500,000 shares of common stock. There were 1,060,000 stock options granted to employees during the nine months ended September 30, 2014 with an exercise price of $0.77 to $1.20, expiring in 2019. The Company used the Black-Scholes option pricing model with a risk-free interest rate of 0.58% - 0.68%, volatility of 69.22% - 71.87% and an expected life of the options of 30 months to estimate the fair values of the options. The weighted average fair value per share was $0.344 for a total value of $0.4 million. These stock options vest 100% on the date of issue. In addition, there were 75,000 stock options granted to consultants during the nine months ended September 30, 2014 with an exercise price of $0.79 to $1.26, expiring in 2017. The Company used the Black-Scholes option pricing model with a risk-free interest rate of 0.285% to 0.52%, volatility of 78.26% to 87.45% and an expected life of the options of 18 to 24 months to estimate the fair values of the options. The weighted average fair value per share was $0.32 to $0.53 for a total value of $27 thousand. These stock options vest 100% on the date of issue. There were 1,094,500 stock options granted during the nine months ended September 30, 2013 with an exercise price of $2.16, expiring on March 21, 2018 and issued 30,000 stock options with an exercise price of $1.17 which expire on September 6, 2015 and 2016. The Company used the Black-Scholes option pricing model with a risk-free interest rate of 0.33% - 0.52%, volatility of 52.16% - 60.31% and an expected life of the options of 30 – 36 months to estimate the fair values of the options. The weighted average fair value per share was $0.69 for a total value of $0.8 million for the 1,094,500 stock options and $13,400 for the 30,000 stock options. The majority of the stock options vest 25% at the end of each quarter in 2013.

During the nine months ended September 30, 2014, 297,500 options were cancelled or expired and 158,500 options were exercised. As of September 30, 2014 and 2013, the intrinsic value of options outstanding and exercisable was $0.3 million and $0.1 million, respectively.

Total stock-based compensation recognized during the three and nine months ended September 30, 2014 was $0.02 million and $0.4 million, respectively (2013 - $0.1 million and $0.5 million, respectively). During the three and nine months ended September 30, 2014, a total of $0.02 million and $0.2 million, respectively (2013 - $0.1 million and $0.3 million, respectively) stock option compensation was attributable to the Troy Mine employees and is included in the amounts reported in general and administrative expense.

As of September 30, 2014, the following stock options were outstanding:

Options	Options	Exercise	Expiration
Granted	Exercisable	Price	Date
10,000	10,000	1.05	October 31, 2014
16,500	16,500	4.98	October 31, 2014
17,000	17,000	4.18	October 31, 2014
6,000	6,000	2.15	October 31, 2014
17,500	17,500	2.16	October 31, 2014
5,000	5,000	1.05	November 2, 2014
30,000	30,000	1.65	December 30, 2014
183,000	183,000	2.15	March 15, 2015
10,000	10,000	1.17	September 6, 2015
7,500	7,500	2.16	September 22, 2015
6,500	6,500	4.98	September 22, 2015
7,000	7,000	4.18	September 22, 2015
25,000	25,000	0.79	September 22, 2015
20,000	20,000	2.50	November 1, 2015
472,500	472,500	4.98	March 21, 2016
2,500	2,500	5.93	April 8, 2016
15,000	15,000	1.26	August 26, 2016
20,000	20,000	1.17	September 6, 2016
60,000	60,000	0.79	March 29, 2017
603,000	603,000	4.18	April 1, 2017
20,000	20,000	3.77	May 3, 2017
616,500	616,500	2.16	March 21, 2018
967,500	967,500	0.79	March 29, 2019
30,000	30,000	0.77	May 29, 2019
15,000	15,000	1.20	August 19, 2019
3,183,000	3,183,000	$2.52

(d) Stock Purchase Warrants

The following stock purchase warrants were outstanding at September 30, 2014 for the purchase of common shares of Revett Mining Company, Inc.:

Number	Exercise price	Expiration
1,153,844	USD $1.00	March 26, 2016
1,095,705	USD $1.00	March 31, 2016
2,249,549

During the nine months ended September 30, 2014, 2,249,549 new warrants were issued and there were no warrants exercised. During the nine months ended September 30, 2013, 55,000 warrants were exercised and no warrants were issued.