DERIVATIVE LIABILITY

12 Months Ended

Jul. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY [Text Block]

10. 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 US dollar. These warrants are considered to be a derivative as a variable amount of cash in the Company's functional currency that 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 warrant derivative. Share purchase warrants with a compensatory nature are not included in this calculation.

The following table shows a continuity of the Company's fair value of warrant derivative:

		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
Fair value adjustment		(233,895	)	-
Balance, July 31, 2023	$	140,015		4,991,645

During the year ended July 31, 2023, the Company recorded a gain on fair value adjustment on derivative liability of $233,895 (July 31, 2022 - gain of $67,856).

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of warrants derivative as at July 31, 2023 and July 31, 2022:

	July 31, 2023	July 31, 2022
Risk-free interest rate	4.67%	1.52%
Expected life of warrants	0.93 to 1.05 years	1.93 to 2.05 years
Expected annualized volatility	151.04% to 154.60%	89.49% to 90.89%
Dividend	Nil	Nil
Forfeiture rate	0%	0%