| SHARE CAPITAL AND RESERVES |
5. | SHARE CAPITAL AND RESERVES |
| (a) | Authorized share capital | | | | | | As at July 31, 2022 and July 31, 2021, the authorized share capital of the Company comprised an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. No preferred shares have been issued to date. All issued common shares are fully paid. Shares issued during the year ended July 31, 2021 On August 25, 2020, the Company issued 1,200,000 flow-through common shares on the exercise of warrants at a price of $0.05 for gross proceeds of $60,000. On June 30, 2021, the Company issued 1,527,273 common shares on the exercise of warrants at an exercise price of $0.05 for gross proceeds of $76,364. On July 7, 2021, the Company issued 1,000,000 common shares to the Vendor of the Masestro to acquire mineral property interest in the Masestro Property (Note 4(a)). On July 16, 2021, the Company issued 2,000,000 flow-through common shares on the exercise of warrants at an exercise price of $0.05 for gross proceeds of $100,000. Shares issued during the year ended July 31, 2022 On October 18, 2021, the Company issued 1,909,092 flow-through common shares on the exercise of warrants at an exercise price of $0.05 for gross proceeds of $95,455. On December 13, 2021, the Company issued 7,000,000 flow-through common shares on the exercise of warrants at an exercise price of $0.05 for gross proceeds of $350,000. On July 12, 2022, the Company issued 1,000,000 common shares on the exercise of options at an exercise price of $0.20 for gross proceeds of $200,000. Flow-through expenditures commitment As at July 31, 2022, the amount of flow-through proceeds remaining to be expended is approximately $296,418, which is related to the flow-through shares issued on December 13, 2021 for gross proceeds of $350,000. This remaining amount must be incurred on or before December 31, 2023. |
| (a) | Warrants | | | | | | Share purchase warrants transactions are summarized as follows: |
| | Number of Outstanding Warrants | | | Weighted Average Exercise Price | | Balance, July 31, 2020 | | | 13,636,365 | | | $ | 0.05 | | Exercised | | | (4,727,273 | ) | | | 0.05 | | Balance, July 31, 2021 | | | 8,909,092 | | | | 0.05 | | Exercised | | | (8,909,092 | ) | | | 0.05 | | Balance, July 31, 2022 | | | - | | | $ | - | |
| (b) | Options | | | | | | Stock option transactions are summarized as follows: |
| | Number of Outstanding Options | | | Weighted Average Exercise Price | | Balance, July 31, 2020 | | | - | | | $ | - | | Exercised | | | - | | | | - | | Balance, July 31, 2021 | | | - | | | | - | | Granted | | | 1,995,700 | | | | 0.20 | | Exercised | | | (1,000,000 | ) | | | 0.20 | | Balance, July 31, 2022 | | | 995,700 | | | $ | 0.20 | |
| | As at July 31, 2022, stock options outstanding and exercisable are as follows: |
| | Outstanding Options | | | Exercise Price | | January 11, 2032 | | | 955,700 | | | $ | 0.20 | |
| | As at July 31, 2022, the weighted average remaining life of the outstanding options is 9.45 years. On January 11, 2022, the Company granted 1,995,700 stock options to a director of the Company at an exercise of $0.20 per option for a period of 10 years. The options fully vested as granted and valued at $399,140 using the Black- Scholes option pricing model with the following weighted average assumptions: expected life of 10 years, volatility of 350%, dividend yield of 0%, and risk-free rate of 1.71%. The fair value of the stock options granted was recognized to equity-settled share-based compensation in the amount of $399,140. On July 12, 2022, 1,000,000 options were exercised for gross proceeds of $200,000 and the fair value of $200,000 was transferred from share capital to reserves. |
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