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CAPITAL STOCK | 9 Months Ended
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Sep. 30, 2016
Stockholders' Equity Note [Abstract] |
Capital Stock | CAPITAL STOCK Authorized capital stock The Company is authorized to issue an unlimited number of Common Shares without par value, unlimited Preferred Shares issuable in series, and unlimited Series A Preferred Shares. The Series A Preferred shares are non-redeemable, non-callable, non-voting and with no right to dividends. The Preferred Shares issuable in series will have the rights, privileges, restrictions and conditions assigned to the particular series upon the Board of Directors approving their issuance. Issued capital stock The significant transactions relating to capital stock issued for the nine months ended September 30, 2016 are:
a) | In the nine months ended September 30, 2016, The Company issued 200,225 Common Shares under the Company’s “at-the-market” offering (the “ATM”) for proceeds of $0.54 million.
b) | On March 14, 2016, the Company completed a public offering of 5,031,250 units at a price of $2.40 per unit for gross proceeds of $12.08 million. Each Unit consisted of one Common Share and one half of one Common Share purchase warrant, or a total of 5,031,250 Common Shares and 2,515,625 warrants. Each warrant is exercisable until March 14, 2019 and entitles the holder thereof to acquire one Common Share upon exercise at an exercise price of US$3.20 per share. These warrants are accounted for as a derivative liability, as the functional currency of the entity issuing the warrant is Cdn$.
The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $2.09 million of fair value for the 2,515,625 warrants issued in connection with the public offering in March 2016.
Risk-free rate | 1.15%
Expected life | 3.0 years
Expected volatility | 106.0%*
Expected dividend yield | —%
* | Expected volatility is measured based on the Company’s historical share price volatility over the expected life of the warrants.
c) | On May 27, 2016, the Company issued 1,212,173 shares to acquire the remaining 40% interest of the Roca Honda Joint Venture for share consideration of $2.68 million.
d) | On June 16, 2016 the Company issued 4,551,284 shares to acquire Alta Mesa with value of $11.38 million.
e) | On September 20, 2016, the Company completed a public offering of 8,337,500 units at a price of $1.80 per unit for gross proceeds of $13.79 million. Each Unit consisted of one Common Share and one half of one Common Share purchase warrant, or a total of 8,337,500 Shares and 4,168,750 Warrants. Each warrant is exercisable until September 20, 2021 and entitles the holder thereof to acquire one Share upon exercise at an exercise price of US$2.45 per share. These warrants are accounted for as a derivative liability, as the functional currency of the entity issuing the warrant is Cdn$.
The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $3.17 million of fair value for the 4,168,750 warrants issued in connection with the public offering in September 2016.
Risk-free rate | 1.2%
Expected life | 5.0 years
Expected volatility | 145.2%*
Expected dividend yield | —%
* | Expected volatility is measured based on the Company’s historical share price volatility over the expected life of the warrants.
Share Purchase Warrants The Company has share purchase warrants denominated in Canadian dollars and US dollars. The following table summarizes the Company’s share purchase warrants denominated in Cdn$:
Month Issued | Expiry Date |  | Exercise Price Cdn$ |  | Warrants Outstanding
June 2012(1) | June 22, 2017 |  | 13.25 |  | 351,025 |
June 2013(1) | June 15, 2017 |  | 9.50 |  | 456,948 |
(1) | The expiration date for these warrants was extended by one year on March 24, 2016.
The following table summarizes the Company’s share purchase warrants denominated in USD. These warrants are accounted for as derivative liabilities as the functional currency of the entity issuing the warrants is Cdn$.
Month Issued | Expiry Date |  | Exercise Price USD$ |  | Warrants Outstanding |  | Fair value at September 30, 2016
June 2015 | January 25, 2017 |  | 6.28 |  |  | 1,224,000 |  |  | — |
March 2016 | March 14, 2019 |  | 3.20 |  |  | 2,515,625 |  |  | 737 |
September 2016 | September 20, 2021 |  | 2.45 |  |  | 4,168,750 |  |  | 2,926 |
|  |  |  |  |  |  | $ | 3,663 |
The US dollar based warrants are classified as Level 2 under the fair value hierarchy (Note 13). The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the less than $0.01 million of fair value for the 1,224,000 warrants at September 30, 2016.
Risk-free rate | 0.29%
Expected life | 0.3 years
Expected volatility | 33.3%*
Expected dividend yield | —%
The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $0.74 million of fair value for the 2,515,625 warrants at September 30, 2016.
Risk-free rate | 0.88%
Expected life | 2.5 years
Expected volatility | 97.6%*
Expected dividend yield | —%
The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $2.93 million of fair value for the 4,168,750 warrants at September 30, 2016.
Risk-free rate | 1.14%
Expected life | 5.0 years
Expected volatility | 147.11%*
Expected dividend yield | —%
* | Expected volatility is measured based on the Company’s historical share price volatility over the expected life of the warrants.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C + Details
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