Common Stock

3 Months Ended

Jun. 30, 2018

Equity [Abstract]

Common Stock

7. Common Stock

(a)          Private Placement

On September 29, 2017, the Company entered into an agreement with Waratah Capital Ltd. (“Waratah”), a controlling shareholder, whereby Waratah and the Company agreed that in order to allow the Company to finalize its acquisition of Quivira Gold Ltd. pursuant to the Share Purchase Agreement dated June 22, 2013 among the Company, Quivira Gold Ltd. and Waratah (the “Quivira Agreement”), the Bridge Loan Agreement dated as of April 17, 2015, and amended on April 28, 2016 and November 1, 2016 between the Company and Waratah would be cancelled and the Company will utilize the loan proceeds advanced to close a private placement of $1,500,000 required to consummate the Company’s acquisition of Quivira Gold Ltd.

On April 24, 2018, the Company closed the private placement as part of the Quivira acquisition and issued 30,000,000 units at a price of $0.05 per unit for gross proceeds of $1,500,000. Each unit consists of one common share and one transferable share purchase warrant exercisable at a price of $0.05 per share for a term of five years.

(b)        Warrants

On April 24, 2018, the Company issued 30,000,000 share purchase warrants as part of the $1,500,000 private placement. The warrants expire five years from the date of issuance and are exercisable at $0.05 per share. The fair value of these warrants was determined with the Black-Scholes option pricing model using the following assumptions: risk free interest rate of 2.73%, volatility of 204.3%, annual rate of dividend of 0%, and expected life of 5 years.

The following table summarizes historical information about the Company’s warrants:

	Number of Warrants		Weighted Average Exercise Price ($)		Weighted Average Life Remaining (Years)
Balance, March 31, 2018		88,000,000		0.05		0.70
Issued		30,000,000		0.05		4.80
Balance, June 30, 2018		118,000,000		0.05		1.74

As at June 30, 2018, the following warrants were outstanding and exercisable:

Number of Warrants		Exercise Price		Expiry Date
	88,000,000	$	0.05		February 27, 2019
	30,000,000	$	0.05		April 24, 2023

(c)        Stock Options

On June 26, 2018, 4,000,000 stock options were exercised via cashless exercise at a price of $0.01 per share, resulting in issuance of 3,754,600 common shares. The cash component, equivalent to $40,000, is calculated as 245,400 shares at $0.163, the closing market price of the Company on the date of issuance.

The following table summarizes historical information about the Company’s incentive stock options:

	Number of options			Weighted Average Exercise Price ($)		Weighted Average Life Remaining (Years)
Balance, March 31, 2018		7,650,000			0.12		3.20
Exercised		(4,000,000	)		0.01		2.10
Balance, June 30, 2018		3,650,000			0.25		4.00

At June 30, 2018, the following stock options were outstanding and exercisable:

Number of Options		Exercise Price		Weighted Average Remaining Life in Years		Expiry Date
	650,000	$	0.15		1.1		August 7, 2019
	3,000,000	$	0.27		4.6		February 15, 2023