Red Metal Resources (RMESF) 10-Q 14 Sep 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jul. 31, 2015 - shares	Total
Document and Entity Information:
Entity Registrant Name	RED METAL RESOURCES, LTD.
Document Type	10-Q
Document Period End Date	Jul. 31, 2015
Amendment Flag	false
Entity Central Index Key	1,358,654
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding	33,456,969
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	rmes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jul. 31, 2015	Jan. 31, 2015
Current Assets
Cash	$ 5,069	$ 4,440
Prepaids and other receivables	6,055	670
Total Current Assets	11,124	5,110
Equipment	3,858	4,775
Unproved mineral properties	661,800	640,653
Total Assets	676,782	650,538
Current Liabilities
Accounts payable	333,921	340,037
Accrued liabilities	173,965	164,263
Due to related parties	900,710	892,495
Notes payable	16,747
Notes payable to related parties	670,756	489,809
Total Current Liabilities	2,096,099	1,886,604
Total Liabilities	2,096,099	1,886,604
Stockholders' Equity
Common stock value	33,457	33,457
Additional paid-in capital	6,730,380	6,730,380
Deficit	(8,194,523)	(8,013,633)
Accumulated other comprehensive income (loss)	11,369	13,730
Total Stockholders' Equity (Deficit)	(1,419,317)	(1,236,066)
Total Liabilities and Stockholders' Equity (Deficit)	$ 676,782	$ 650,538

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2015	Jan. 31, 2015
Balance Sheet
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	33,456,969	33,456,969
Common stock, shares outstanding	33,456,969	33,456,969

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2015	Jul. 31, 2014
Operating expenses
Administration	$ 14,301	$ 12,856	$ 23,595	$ 25,646
Advertising and promotion	3,139	5,086	5,525	12,767
Amortization	337	627	693	1,282
Automobile	(2,319)	1,236	(1,585)	2,445
Bank charges	2,214	733	3,948	1,663
Consulting fees	30,000	35,517	60,000	65,517
Interest on current debt	21,127	16,981	40,021	31,525
IVA expense	(1,223)	(43)	(1,273)	(77)
Mineral exploration costs	6,470	6,876	9,649	10,134
Office	2,443	2,749	4,874	5,629
Professional fees	7,592	5,795	9,666	9,253
Rent	2,617	2,978	5,271	5,935
Regulatory	1,562	2,911	4,442	6,620
Travel and entertainment	180		180	216
Salaries, wages and benefits	12,186	12,439	26,362	24,786
Stock based compensation				146,901
Foreign exchange loss (gain)	(213)	77	(913)	264
Write-down of unproved mineral properties			3,401	2,265
Total operating expenses	100,413	106,818	193,856	352,771
Other items
Gain on mineral payment option				27,687
Recovery of mineral exploration costs	10,007	3,015	12,966	6,017
Net loss	(90,406)	(103,803)	(180,890)	(319,067)
Foreign exchange translation	28,254	(1,406)	(2,361)	(9,036)
Comprehensive income (loss)	$ (62,152)	$ (105,209)	$ (183,251)	$ (328,103)
Net loss per share - basic and diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding - basic and diluted	33,456,969	32,956,969	33,456,969	32,956,969

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance, shares at Jan. 31, 2014	32,956,969
Beginning Balance, amount at Jan. 31, 2014	$ 32,957	$ 6,563,101	$ (7,481,121)	$ 52,003	$ (833,060)
Stock options, value		146,901			146,901
Foreign exchange translation				(9,036)	(9,036)
Net income (loss) for the period			(319,067)		(319,067)
Ending Balance, shares at Jul. 31, 2014	32,956,969
Ending Balance, amount at Jul. 31, 2014	$ 32,957	6,710,002	(7,800,188)	42,967	(1,014,262)
Common stock issued for property, shares	500,000
Common stock issued for property, value	$ 500	24,500			25,000
Stock options, value		(4,122)			(4,122)
Foreign exchange translation				(29,237)	(29,237)
Net income (loss) for the period			(213,445)		(213,445)
Ending Balance, shares at Jan. 31, 2015	33,456,969
Ending Balance, amount at Jan. 31, 2015	$ 33,457	6,730,380	(8,013,633)	13,730	(1,236,066)
Foreign exchange translation				(2,361)	(2,361)
Net income (loss) for the period			(180,890)		(180,890)
Ending Balance, shares at Jul. 31, 2015	33,456,969
Ending Balance, amount at Jul. 31, 2015	$ 33,457	$ 6,730,380	$ (8,194,523)	$ 11,369	$ (1,419,317)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Cash Flows used in Operating Activities
Net loss	$ (180,890)	$ (319,067)
Adjustment to reconcile net loss to net cash used in operating activities:
Write-down of unproved properties	3,401	2,265
Amortization	693	1,282
Stock based compensation		146,901
Gain on mineral payment option		27,687
Changes in operating assets and liabilities:
Prepaids and other receivables	(5,800)	(3,523)
Accounts payable	(519)	24,649
Accrued liabilities	10,963	11,719
Due to related parties	25,901	85,086
Notes payable to related party	23,815	14,648
Net cash used in operating activities	(122,436)	(63,727)
Cash Flows from Investing Activities
Option payments received on mineral properties		50,000
Acquisition of unproved mineral properties	59,531	38,137
Net cash provided by (used in) investing activities	(59,531)	11,863
Cash Flows from Financing Activities
Cash received on issuance of notes payable to related party	167,576	55,522
Cash received on issuance of notes payable	16,619
Net cash provided by financing activities	184,195	55,522
Effect of foreign currency exchange	(1,599)	3,049
Increase (decrease) in cash	629	6,707
Cash, beginning of period	4,440	3,508
Cash, end of period	$ 5,069	$ 10,215
Supplemental Disclosure of Cash Flow Information:
Income tax
Interest
Non-cash investing transactions:
Changes in accrued mineral property taxes	$ 4,682

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jul. 31, 2015
Notes
Organization and Basis of Presentation	NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION Nature of Operations Red Metal Resources Ltd. (the “Company”) was incorporated on January 10, 2005, under the laws of the State of Nevada. On August 21, 2007, the Company acquired a 99% interest in Minera Polymet Limitada (“Polymet”), a limited liability company formed on August 21, 2007, under the laws of the Republic of Chile. The Company is involved in acquiring and exploring mineral properties in Chile. The Company has not determined whether its properties contain mineral reserves that are economically recoverable. Unaudited Interim Consolidated Financial Statements The unaudited interim consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended January 31, 2015, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The interim unaudited financial statements should be read in conjunction with those financial statements included in Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and six month periods ended July 31, 2015 are not necessarily indicative of the results that may be expected for the year ending January 31, 2016. Recent Accounting Pronouncements The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. It does not expect the adoption of these pronouncements to have a material impact on its financial position, results of operations or cash flows.

Related-Party Transactions Disc

Related-Party Transactions Disclosure	6 Months Ended
	Jul. 31, 2015
Notes
Related-Party Transactions Disclosure	NOTE 2 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: July 31, 2015 January 31, 2015 Due to a company owned by an officer (a) $ 501,294 $ 445,601 Due to a company controlled by directors (b) 316,206 317,089 Due to a company controlled by a major shareholder (a) 47,524 91,966 Due to a major shareholder (a) 35,686 37,839 Total due to related parties $ 900,710 $ 892,495 Note payable to the Chief Executive Officer (“CEO”) (c) $ 262,115 $ 248,564 Note payable to the Chief Financial Officer (“CFO”) (c) 11,237 10,802 Note payable to a major shareholder (c) 278,559 113,241 Note payable to a company controlled by directors (c) 118,845 117,202 Total notes payable to related parties $ 670,756 $ 489,809 (a) Amounts are unsecured, due on demand and bear no interest. (b) Amounts are unsecured, due on demand and bear interest at 10%. (c) Amounts are unsecured, due on demand and bear interest at 8%. During the six months ended July 31, 2015, the Company accrued $23,687 Transactions with Related Parties During the six months ended July 31, 2015 and 2014, the Company incurred the following expenses with related parties: July 31, 2015 July 31, 2014 Consulting fees paid or accrued to a company owned by the CFO $ 60,000 $ 60,000 Advertising and promotion fees paid or accrued to a company controlled by two directors -- 4,113 Rent fees paid or accrued to a company controlled by a major shareholder 5,271 5,953 Royalty revenue earned from a company controlled by a major shareholder $ -- $ 6,017

Unproved Mineral Properties Dis

Unproved Mineral Properties Disclosure	6 Months Ended
	Jul. 31, 2015
Notes
Unproved Mineral Properties Disclosure	NOTE 3 - UNPROVED MINERAL PROPERTIES Mineral Claims January 31, 2015 Additions/ Payments Property Taxes Paid/ Accrued Write- down Effect of foreign currency translation July 31, 2015 Farellon Project Farellon Alto 1-8(1) $ 416,430 $ -- $ 3,773 $ -- $ (24,255) $ 395,948 Cecil 41,729 -- 1,597 -- (2,487) 40,839 Quina 24,409 -- 1,759 -- (1,514) 24,654 Exeter - 27,708 1,628 -- (1,526) 27,810 482,568 27,708 8,757 -- (29,782) 489,251 Perth Project -- -- 16,413 -- (1,174) 15,239 Mateo Project Margarita 20,107 -- 392 -- (1,171) 19,328 Che 21,343 -- 532 -- (1,252) 20,623 Irene 36,213 -- 420 -- (2,090) 34,543 Mateo 80,422 -- 15,005 (8,415) (4,196) 82,816 158,085 -- 16,349 (8,709) 157,310 Total Costs $ 640,653 $ 27,708 $ 41,519 $ $ (39,665) $ 661,800 (1) During the six month period ended July 31, 2015, the Company received $12,966 Farellon Project On June 3, 2015, the subsidiary of the Company entered into an option agreement (the “Option Agreement”), made effective on June 15, 2015, with an unrelated party (the “Vendor”), to earn 100% interest in a mining exploration concession Exeter 1-54 (the “Exeter claim”). In order to acquire 100% interest in the Exeter claim, the Company is required to pay a total of $150,000 as outlined in the following schedule: Option Payment Upon execution of the Option Agreement (“Execution date”)(paid) $ 25,000 On or before May 12, 2016 25,000 On or before May 12, 2017 25,000 On or before May 12, 2018 25,000 On or before May 12, 2019 50,000 Total $ 150,000 All of the above payments shall be made only if the Company wishes to keep the Option Agreement in force and finally to exercise the option to purchase. In addition to the option payments, the Vendor will retain a 1.5% royalty from net smelter returns (“NSR”) on the Exeter claim, which the Company may buy out for a one-time payment of $750,000 any time after acquiring 100% of the Exeter claim. Should the Company choose to mine the Exeter claim prior to acquiring the option, the Company will be obligated to pay a minimum monthly royalty of $2,500 up to 5,000 tonnes, and a further $0.25 for every additional tonne mined.

Equipment Disclosure

Equipment Disclosure	6 Months Ended
	Jul. 31, 2015
Notes
Equipment Disclosure	NOTE 4 - EQUIPMENT Amortization schedule for the equipment: July 31, 2015 January 31, 2015 Book value $ 4,775 $ 8,949 Amortization (693) (2,137) Effect of foreign exchange translation (224) (2,037) Equipment $ 3,858 $ 4,775 The equipment consists of a truck that is used for daily operations and is amortized on a declining balance basis at 30%

Common Stock Disclosure

Common Stock Disclosure	6 Months Ended
	Jul. 31, 2015
Notes
Common Stock Disclosure	NOTE 5 - COMMON STOCK During the six months ended July 31, 2015, the Company did not have any transactions that resulted in issuance of its common stock. Warrants Number of Warrants Balance, January 31, 2015 267,335 Expired (267,335) Balance, July 31, 2015 -- During the six months ended July 31, 2015, all warrants expired unexercised. Options On February 28, 2014, the Company granted 1,200,000 options to purchase shares of its common stock to certain officers, directors, consultants and employees. The Chief Executive Officer, Chief Financial Officer, and Vice President of Exploration were each granted options to purchase up to 300,000 shares of the Company’s common stock. The options vested upon grant and are exercisable at $0.15 for a term of two years. At July 31, 2015, all options remained unexercised. The weighted average life of the options was 0.58 years and the weighted average exercise price was $0.15 .

Related-Party Transactions Di12

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Tables)	6 Months Ended
	Jul. 31, 2015
Tables/Schedules
Schedule of Related Party Transactions	July 31, 2015 January 31, 2015 Due to a company owned by an officer (a) $ 501,294 $ 445,601 Due to a company controlled by directors (b) 316,206 317,089 Due to a company controlled by a major shareholder (a) 47,524 91,966 Due to a major shareholder (a) 35,686 37,839 Total due to related parties $ 900,710 $ 892,495 Note payable to the Chief Executive Officer (“CEO”) (c) $ 262,115 $ 248,564 Note payable to the Chief Financial Officer (“CFO”) (c) 11,237 10,802 Note payable to a major shareholder (c) 278,559 113,241 Note payable to a company controlled by directors (c) 118,845 117,202 Total notes payable to related parties $ 670,756 $ 489,809 (a) Amounts are unsecured, due on demand and bear no interest. (b) Amounts are unsecured, due on demand and bear interest at 10%. (c) Amounts are unsecured, due on demand and bear interest at 8%.

Unproved Mineral Properties D13

Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments (Tables)	6 Months Ended
	Jul. 31, 2015
Tables/Schedules
Schedule of Option Agreement Commitments	Option Payment Upon execution of the Option Agreement (“Execution date”)(paid) $ 25,000 On or before May 12, 2016 25,000 On or before May 12, 2017 25,000 On or before May 12, 2018 25,000 On or before May 12, 2019 50,000 Total $ 150,000

Equipment Disclosure_ Amortizat

Equipment Disclosure: Amortization Schedule for Equipment (Tables)	6 Months Ended
	Jul. 31, 2015
Tables/Schedules
Amortization Schedule for Equipment	July 31, 2015 January 31, 2015 Book value $ 4,775 $ 8,949 Amortization (693) (2,137) Effect of foreign exchange translation (224) (2,037) Equipment $ 3,858 $ 4,775

Common Stock Disclosure_ Schedu

Common Stock Disclosure: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	6 Months Ended
	Jul. 31, 2015
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants or Rights	Number of Warrants Balance, January 31, 2015 267,335 Expired (267,335) Balance, July 31, 2015 --

Organization and Basis of Pre16

Organization and Basis of Presentation (Details)	Aug. 21, 2007
Details
Business acquisition, interest acquired	99.00%

Related-Party Transactions Di17

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Details) - USD ($)	Jul. 31, 2015	Jan. 31, 2015
Due to related party	$ 900,710	$ 892,495
Notes payable to related party	670,756	489,809
Company Owned by Officer
Due to related party	501,294	445,601
Company Controlled by Directors
Due to related party	316,206	317,089
Notes payable to related party	118,845	117,202
Company Controlled by Major Shareholder
Due to related party	47,524	91,966
Majority Shareholder
Due to related party	35,686	37,839
Notes payable to related party	278,559	113,241
CEO
Notes payable to related party	262,115	248,564
CFO
Notes payable to related party	$ 11,237	$ 10,802

Related-Party Transactions Di18

Related-Party Transactions Disclosure (Details) - USD ($)	6 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Notes payable to related parties
Interest expense accrued with related parties	$ 23,687	$ 14,648
Trade accounts payable with related parties
Interest expense accrued with related parties	$ 7,451	$ 8,679

Related-Party Transactions Di19

Related-Party Transactions Disclosure: Schedule or Transactions with Related Parties (Details) - USD ($)	6 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Company Owned by the Chief Financial Officer
Related Party Transaction, Amounts of Transaction	$ 60,000	$ 60,000
Corporate Communication Fees, Company Controlled by Directors
Related Party Transaction, Amounts of Transaction		4,113
Company Controlled by Major Shareholder
Related Party Transaction, Amounts of Transaction	$ 5,271	5,953
Company Controlled by Major Shareholder(2)
Related Party Transaction, Amounts of Transaction		$ 6,017

Unproved Mineral Properties D20

Unproved Mineral Properties Disclosure: Schedule of Unproved Mineral Properties (Details) - USD ($)	6 Months Ended
	Jul. 31, 2015	Jan. 31, 2015
Mineral claims, balance	$ 661,800	$ 640,653
Mineral claims, additions/payments	27,708
Mineral claims, property taxes	41,519
Mineral claims, effect of foreign currency translation	(39,665)
Mineral claims, write-down	(8,415)
Farellon Project
Mineral claims, balance	489,251	482,568
Mineral claims, additions/payments	27,708
Mineral claims, property taxes	8,757
Mineral claims, effect of foreign currency translation	(29,782)
Perth Project
Mineral claims, balance	15,239
Mineral claims, property taxes	16,413
Mineral claims, effect of foreign currency translation	(1,174)
Mateo Project
Mineral claims, balance	157,310	$ 158,085
Mineral claims, property taxes	16,349
Mineral claims, effect of foreign currency translation	(8,709)
Mineral claims, write-down	$ (8,415)

Unproved Mineral Properties D21

Unproved Mineral Properties Disclosure (Details)	6 Months Ended
	Jul. 31, 2015USD ($)
Details
Royalty payments received	$ 12,966
Royalty fees paid	$ 8,698

Unproved Mineral Properties D22

Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments (Details)	Jul. 31, 2015USD ($)
Option Payments	$ 150,000
Upon execution
Option Payments	25,000
On or before May 12, 2016
Option Payments	25,000
On or before May 12, 2017
Option Payments	25,000
On or before May 12, 2018
Option Payments	25,000
On or before May 12, 2019
Option Payments	$ 50,000

Equipment Disclosure_ Amortiz23

Equipment Disclosure: Amortization Schedule for Equipment (Details) - USD ($)	Jul. 31, 2015	Jan. 31, 2015
Details
Book value	$ 4,775	$ 8,949
Amortization of equipment	(693)	(2,137)
Equipment	$ 3,858	$ 4,775

Common Stock Disclosure_ Sche24

Common Stock Disclosure: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - shares	6 Months Ended
	Jul. 31, 2015	Jan. 31, 2015
Details
Warrants outstanding		267,335
Warrants expired	(267,335)

Common Stock Disclosure (Detail

Common Stock Disclosure (Details) - $ / shares	12 Months Ended
	Jan. 31, 2015	Jul. 31, 2015
Details
Number of options granted	1,200,000
Options exercisable price	$ 0.15
Weighted average exercise price of the options		$ 0.15