CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL

3 Months Ended

Oct. 31, 2022

Disclosure Capital Stock And Additional Paid In Capital [Abstract]

CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL [Text Block]

10. CAPITAL STOCK AND ADDITIONAL PAID-IN-CAPITAL

Private Placements

On January 31, 2022, the Company completed a non-brokered private placement for gross proceeds totalling $2,407,000 through the issuance of 6,017,500 units at a price of $0.40 per Unit, where each Unit consists of one share of common stock and one share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of $0.60 until January 28, 2024. Certain directors of the Company purchased an aggregate of 2,075,000 Units of this private placement for gross proceeds of $830,000. The Company has paid associated legal fees of $14,002 in connection with this financing.

Stock Options

On February 7, 2022, the Company granted a total of 805,000 stock options with a fair value of $406,790 to employees, officers, directors, and consultants of the Company, exercisable at a weighted average price of $0.65 (C$0.82) per share for a period of five years.

The following incentive stock options were outstanding and exercisable as at October 31, 2022:

Number of Options	Weighted Average Exercise Price (C$)	Expiry Date
75,000	0.50	March 17, 2023
350,000	1.20	April 19, 2023
180,000	1.00	November 30, 2023
290,000	0.70	August 21, 2024
1,338,500	1.20	September 22, 2025
805,000	0.82	February 7, 2027
3,038,500	1.02

As at October 31, 2022, the aggregate intrinsic value of the Company's stock options is $Nil (July 31, 2022 - $Nil).

Stock option transactions are summarized as follows:

	Number of Options		Weighted Average Exercise Price ($C)
Balance outstanding and exercisable, July 31, 2021	2,233,500		1.09
Options granted	805,000		0.82
Balance outstanding and exercisable, July 31, 2022	3,038,500		1.02
Balance outstanding and exercisable, October 31, 2022	3,038,500	$	1.02

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of stock options issued during the period ended October 31, 2022 and July 31, 2022:

	October 31, 2022	July 31, 2022
Risk-free interest rate	Nil	1.38%
Expected life of stock options	Nil	5 years
Expected annualized volatility	Nil	114.02%
Dividend	Nil	Nil
Forfeiture rate	Nil	0%

Share-Based Payments

The Company has a stock option plan under which it is authorized to grant options to executive officers and directors, employees and consultants enabling them to acquire up to 10% of the issued and outstanding common stock of the Company. Under the plan the exercise price of each option equals the market price of the Company's stock, less any applicable discount, as calculated on the date of grant. The options can be granted for a maximum term of 5 years with vesting determined by the board of directors.

Warrants

On June 14, 2022, the Company amended the term of 6,308,310 common share purchase warrants by extending their expiry dates by two years and adding an accelerated expiry provision. Between July 3, 2019 and September 21, 2020 the Corporation issued a total of 6,308,310 warrants to purchase shares of common stock of the Corporation in connection with various private placement financings and debt financings. 3,959,727 of these Warrants were granted with an exercise price of CAD $1.00 per share ("CAD Priced Warrants") with expiry dates ranging from July 3, 2022 to September 9, 2022, and 2,348,583 of these warrants were granted with an exercise price of US$1.00 per share ("USD Priced Warrants") with expiry dates ranging from July 31, 2022 to September 21, 2022. All other terms and conditions of the Warrants remain unchanged.

The following warrants were outstanding at October 31, 2022:

Number of Warrants	Exercise Price (C$)	Expiry Date
518,406	1.00	July 3, 2024
2,291,321	1.00	August 19, 2024
1,150,000	1.00	September 9, 2024
2,181,917	1.36	July 31, 2024
166,666	1.36	September 21, 2024
6,017,500	0.76	January 28, 2024
12,325,810	0.95

Warrant transactions are summarized as follows:

	Number of Warrants			Weighted Average Exercise Price ($C)
Balance, July 31, 2021	6,851,379		$	1.14
Warrants issued	6,017,500			0.76
Warrants expired	(531,873	)		(1.21	)
Balance, July 31, 2022	12,337,006		$	0.95
Warrants issued	-			-
Warrants expired	(11,196	)		1.00
Balance, October 31, 2022	12,325,810		$	0.95