DERIVATIVE LIABILITY

3 Months Ended

Oct. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY [Text Block]

9. DERIVATIVE LIABILITY

The exercise price of the Company's share purchase warrants is fixed in Canadian dollars and the functional currency of the Company is the USD. These warrants are considered to be a derivative as a variable amount of cash in the Company's functional currency will be received on exercise of the warrants. Accordingly, the share purchase warrants issued as part of past financings, are classified and accounted for as a derivative liability.

The following table shows a continuity of the Company's derivative liability:

		Warrant derivative			Number of warrants accounted for as derivative liability
Balance, July 31, 2021	$	441,766			5,480,083
Expiry		-			(488,438	)
Fair value adjustment		(67,856	)		-
Balance, July 31, 2022	$	373,910		$	4,991,645
Expiry		-			-
Fair value adjustment		(17,984	)		-
Balance, October 31, 2022	$	355,926			4,991,645

For the three-month period ended October 31, 2022, the Company recorded a total gain on fair value of derivative liability of $17,984 during the period (October 31, 2021 -$337,093).

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of warrants as at October 31, 2022 and July 31, 2022:

	October 31, 2022	July 31, 2022
Risk-free interest rate	1.52%	1.52%
Expected life of warrants	1.67 to 1.80 years	1.93 to 2.05 years
Expected annualized volatility	98.44% to 99.71%	89.49% to 90.89%
Dividend	Nil	Nil
Forfeiture rate	0%	0%