CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL [Text Block] | 6. CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL On October 6, 2017, the Company issued 58,830,645 common shares for conversion of the minority interest in its Australian properties at a fair value of $13,830,232 (Note 11). On August 2, 2017, the Company issued 3,628,333 common shares at a value of C$0.30 per common share for total proceeds of C$1,088,500 ($820,875). On March 17, 2017, the Company issued 1,179,061 common shares at a value of C$0.29 per common share for total proceeds of C$341,928 ($261,375). Stock Options The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants and the number of options granted under the Plan shall not exceed 15% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors. Stock option transactions are summarized as follows: Stock Options Weighted average Number exercise price in Canadian $ Outstanding, December 31, 2015 17,610,000 $ 0.12 Granted 5,260,000 0.14 Expired (1,050,000 ) 0.24 Outstanding, December 31, 2016 21,820,000 0.11 Granted 5,600,000 0.38 Exercised (3,285,000 ) 0.08 Expired (550,000 ) 0.07 Outstanding, December 31, 2017 23,585,000 $ 0.18 Number currently exercisable 22,495,500 $ 0.18 Number of Number of Exercise Expiary Date Options 1,000,000 1,000,000 0.100 May 9, 2018 3,375,000 3,375,000 0.120 July 25, 2019 200,000 200,000 0.100 December 30, 2019 3,450,000 3,450,000 0.140 April 17, 2020 250,000 250,000 0.600 May 11, 2020 400,000 400,000 0.115 August 28, 2020 4,300,000 4,300,000 0.010 November 5, 2020 4,785,500 4,860,000 0.130 February 8, 2021 320,000 400,000 0.200 June 14, 2021 4,365,000 5,100,000 0.370 February 21, 2022 50,000 250,000 0.300 October 6, 2022 22,495,500 23,585,000 As at December 31, 2017 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $1,467,123 (2016 - $922,412). Stock-based compensation During the year ended December 31, 2017, the Company recognized stock-based compensation of $1,283,830 (December 31, 2016 - $469,434) in the statement of loss and comprehensive loss as a result of incentive stock options granted and vested in the current period. There was a corresponding entry to additional paid in capital. There were 5,600,000 stock options granted during the year ended December 31, 2017 (December 31, 2016 – 5,260,000). The weighted average fair value of the options granted in the year was C$0.32 (2016 - C$0.12) . The fair value of all compensatory options granted is estimated on grant date using the Black-Scholes option pricing model. The weighted average assumptions used in calculating the fair values of options granted are as follows: 2017 2016 Risk-free interest rate 1.13% 1.13% Expected life 5 years 5 years Volatility 141.12% 141.12% Forfeiture rate 0.00% 0.00% Dividend rate 0.00% 0.00% |