Red Metal Resources (RMESF) 10-Q 14 Dec 15 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 31, 2015shares
Document and Entity Information:
Entity Registrant Name	RED METAL RESOURCES, LTD.
Document Type	10-Q
Document Period End Date	Oct. 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	Q3
Trading Symbol	rmes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Oct. 31, 2015	Jan. 31, 2015
Current Assets
Cash		$ 4,440
Prepaids and other receivables	$ 3,095	670
Total Current Assets	3,095	5,110
Equipment	3,470	4,775
Unproved mineral properties	643,989	640,653
Total Assets	650,554	650,538
Current Liabilities
Bank indebtness	540
Accounts payable	350,321	340,037
Accrued liabilities	176,029	164,263
Due to related parties	934,030	892,495
Notes payable	17,086
Notes payable to related parties	685,861	489,809
Total Current Liabilities	2,163,867	1,886,604
Total Liabilities	2,163,867	1,886,604
Stockholders' Equity
Common stock value	33,457	33,457
Additional paid-in capital	6,730,380	6,730,380
Deficit	(8,279,799)	(8,013,633)
Accumulated other comprehensive income (loss)	2,649	13,730
Total Stockholders' Equity (Deficit)	(1,513,313)	(1,236,066)
Total Liabilities and Stockholders' Equity (Deficit)	$ 650,554	$ 650,538

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Oct. 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		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Operating expenses
Administration	$ 13,855	$ 12,457	$ 37,450	$ 38,103
Advertising and promotion	416	2,732	5,941	15,499
Amortization	282	580	975	1,862
Automobile	229	1,003	(1,356)	3,448
Bank charges	1,048	1,574	4,996	3,237
Consulting fees	30,000	31,862	90,000	97,379
Interest on current debt	20,657	17,503	60,678	49,028
IVA expense	(262)	69	(1,535)	(8)
Mineral exploration costs	2,729	4,501	12,378	14,635
Office	2,338	2,757	7,212	8,386
Professional fees	4,004	4,009	13,670	13,262
Rent	2,388	2,797	7,659	8,732
Regulatory	581	1,174	5,023	7,794
Travel and entertainment	442	172	622	388
Salaries, wages and benefits	11,129	12,078	37,491	36,864
Stock based compensation				146,901
Foreign exchange loss (gain)	(420)	(441)	(1,333)	(177)
Write-down of unproved mineral properties			3,401	2,265
Total operating expenses	89,416	94,827	283,272	447,598
Other items
Gain on mineral payment option				27,687
Recovery of mineral exploration costs	4,140	3,002	17,106	9,019
Net loss	(85,276)	(91,825)	(266,166)	(410,892)
Foreign exchange translation	(8,720)	35,896	(11,081)	26,860
Comprehensive income (loss)	$ (93,996)	$ (55,929)	$ (277,247)	$ (384,032)
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				26,860	26,860
Net income (loss) for the period			(410,892)		(410,892)
Ending Balance, shares at Oct. 31, 2014	32,956,969
Ending Balance, amount at Oct. 31, 2014	$ 32,957	6,710,002	(7,892,013)	78,863	(1,070,191)
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				(65,133)	(65,133)
Net income (loss) for the period			(121,620)		(121,620)
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				(11,081)	(11,081)
Net income (loss) for the period			(266,166)		(266,166)
Ending Balance, shares at Oct. 31, 2015	33,456,969
Ending Balance, amount at Oct. 31, 2015	$ 33,457	$ 6,730,380	$ (8,279,799)	$ 2,649	$ (1,513,313)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash Flows used in Operating Activities
Net loss	$ (266,166)	$ (410,892)
Adjustment to reconcile net loss to net cash used in operating activities:
Amortization	975	1,862
Gain on mineral payment option		27,687
Stock based compensation		146,901
Write-down of unproved properties	3,401	2,265
Changes in operating assets and liabilities:
Prepaids and other receivables	(2,654)	(1,577)
Accounts payable	15,931	17,994
Accrued liabilities	17,277	12,110
Due to related parties	65,785	110,562
Notes payable to related party	37,756	23,586
Net cash used in operating activities	(127,695)	(124,876)
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	170,022	101,002
Cash received on issuance of notes payable	16,619
Net cash provided by financing activities	186,641	101,002
Effect of foreign currency exchange	(4,395)	16,576
Increase (decrease) in cash	(4,980)	4,565
Cash, beginning of period	4,440	3,508
Cash, end of period	$ (540)	$ 8,073
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	9 Months Ended
	Oct. 31, 2015
Notes
Organization and Basis of Presentation	NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION Nature of Operations Red Metal Resources Ltd. (the “Company”) holds a 99% interest in Minera Polymet SpA (“Polymet”) incorporated 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 unaudited interim consolidated 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 nine month periods ended October 31, 2015 are not necessarily indicative of the results that may be expected for the year ending January 31, 2016.

Related-party Transactions Disc

Related-party Transactions Disclosure	9 Months Ended
	Oct. 31, 2015
Notes
Related-party Transactions Disclosure	NOTE 2 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: October 31, 2015 January 31, 2015 Due to a company owned by an officer (a) $ 529,347 $ 445,601 Due to a company controlled by directors (b) 318,969 317,089 Due to a company controlled by a major shareholder (a) 50,988 91,966 Due to a major shareholder (a) 34,726 37,839 Total due to related parties $ 934,030 $ 892,495 Note payable to the Chief Executive Officer (“CEO”) (c) $ 266,821 $ 248,564 Note payable to the Chief Financial Officer (“CFO”) (c) 11,466 10,802 Note payable to a major shareholder (c) 284,146 113,241 Note payable to a company controlled by directors (c) 123,428 117,202 Total notes payable to related parties $ 685,861 $ 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 nine months ended October 31, 2015, the Company recorded $37,288 (October 31, 2014 - $23,586) in interest expense on the notes payable to related parties. During the same time, the Company accrued $11,066 (October 31, 2014 - $12,195) in interest expense on trade accounts payable with related parties. Transactions with Related Parties During the nine months ended October 31, 2015 and 2014, the Company incurred the following expenses with related parties: October 31, 2015 October 31, 2014 Consulting fees paid or accrued to a company owned by the CFO $ 90,000 $ 90,000 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 $ 7,659 $ 8,732 Royalty revenue earned from a company controlled by a major shareholder $ -- $ 9,019

Unproved Mineral Properties Dis

Unproved Mineral Properties Disclosure	9 Months Ended
	Oct. 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 October 31, 2015 Farellon Project Farellon Alto 1-8(1) $ 416,430 $ -- $ 3,773 $ -- $ (34,911) $ 385,292 Cecil 41,729 -- 1,597 -- (3,586) 39,740 Quina 24,409 -- 1,759 -- (2,178) 23,990 Exeter -- 27,708 1,628 -- (2,275) 27,061 482,568 27,708 8,757 -- (42,950) 476,083 Perth Project -- -- 16,413 -- (1,584) 14,829 Mateo Project Margarita 20,107 -- 392 -- (1,691) 18,808 Che 21,343 -- 532 -- (1,807) 20,068 Irene 36,213 -- 420 -- (3,019) 33,614 Mateo 80,422 -- 15,005 (8,415) (6,425) 80,587 158,085 -- 16,349 (8,415) (12,942) 153,077 Total Costs $ 640,653 $ 27,708 $ 41,519 $ (8,415) $ (57,476) $ 643,989 (1) During the nine month period ended October 31, 2015, the Company received $17,106 in royalty payments from minerals extracted during the small scale mining operations that were carried out by a third-party; these payments were recorded as recovery of mineral exploration costs. During the same period the Company paid $12,055 in royalty payments to the original vendor of the Farellon Alto 1-8, which were recorded as part of mineral exploration costs. 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.

Common Stock Disclosure

Common Stock Disclosure	9 Months Ended
	Oct. 31, 2015
Notes
Common Stock Disclosure	NOTE 4 - COMMON STOCK During the nine months ended October 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, October 31, 2015 -- Options On February 28, 2014, the Company granted options to purchase up to 1,200,000 shares of its common stock to certain officers, directors, consultants and employees. The Company’s CEO, CFO, 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 October 31, 2015, all options remained unexercised. The weighted average life of the options was 0.33 years and the weighted average exercise price was $0.15.

Related-party Transactions Di11

Related-party Transactions Disclosure: Schedule of Related Party Transactions (Tables)	9 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Related Party Transactions	October 31, 2015 January 31, 2015 Due to a company owned by an officer (a) $ 529,347 $ 445,601 Due to a company controlled by directors (b) 318,969 317,089 Due to a company controlled by a major shareholder (a) 50,988 91,966 Due to a major shareholder (a) 34,726 37,839 Total due to related parties $ 934,030 $ 892,495 Note payable to the Chief Executive Officer (“CEO”) (c) $ 266,821 $ 248,564 Note payable to the Chief Financial Officer (“CFO”) (c) 11,466 10,802 Note payable to a major shareholder (c) 284,146 113,241 Note payable to a company controlled by directors (c) 123,428 117,202 Total notes payable to related parties $ 685,861 $ 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%.

Related-party Transactions Di12

Related-party Transactions Disclosure: Schedule or Transactions with Related Parties (Tables)	9 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule or Transactions with Related Parties	October 31, 2015 October 31, 2014 Consulting fees paid or accrued to a company owned by the CFO $ 90,000 $ 90,000 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 $ 7,659 $ 8,732 Royalty revenue earned from a company controlled by a major shareholder $ -- $ 9,019

Unproved Mineral Properties D13

Unproved Mineral Properties Disclosure: Schedule of Unproved Mineral Properties (Tables)	9 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Unproved Mineral Properties	Mineral Claims January 31, 2015 Additions/ Payments Property Taxes Paid/ Accrued Write- down Effect of foreign currency translation October 31, 2015 Farellon Project Farellon Alto 1-8(1) $ 416,430 $ -- $ 3,773 $ -- $ (34,911) $ 385,292 Cecil 41,729 -- 1,597 -- (3,586) 39,740 Quina 24,409 -- 1,759 -- (2,178) 23,990 Exeter -- 27,708 1,628 -- (2,275) 27,061 482,568 27,708 8,757 -- (42,950) 476,083 Perth Project -- -- 16,413 -- (1,584) 14,829 Mateo Project Margarita 20,107 -- 392 -- (1,691) 18,808 Che 21,343 -- 532 -- (1,807) 20,068 Irene 36,213 -- 420 -- (3,019) 33,614 Mateo 80,422 -- 15,005 (8,415) (6,425) 80,587 158,085 -- 16,349 (8,415) (12,942) 153,077 Total Costs $ 640,653 $ 27,708 $ 41,519 $ (8,415) $ (57,476) $ 643,989

Unproved Mineral Properties D14

Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments (Tables)	9 Months Ended
	Oct. 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

Common Stock Disclosure_ Schedu

Common Stock Disclosure: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	9 Months Ended
	Oct. 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, October 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 ($)	Oct. 31, 2015	Jan. 31, 2015
Due to related party	$ 934,030	$ 892,495
Notes payable to related party	685,861	489,809
Company Owned by Officer
Due to related party	529,347	445,601
Company Controlled by Directors
Due to related party	318,969	317,089
Notes payable to related party	123,428	117,202
Company Controlled by Major Shareholder
Due to related party	50,988	91,966
Majority Shareholder
Due to related party	34,726	37,839
Notes payable to related party	284,146	113,241
CEO
Notes payable to related party	266,821	248,564
CFO
Notes payable to related party	$ 11,466	$ 10,802

Related-party Transactions Di18

Related-party Transactions Disclosure (Details) - USD ($)	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Notes payable to related parties
Interest expense accrued with related parties	$ 37,288	$ 23,586
Trade accounts payable with related parties
Interest expense accrued with related parties	$ 11,066	$ 12,195

Related-party Transactions Di19

Related-party Transactions Disclosure: Schedule or Transactions with Related Parties (Details) - USD ($)	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Consulting fees paid or accrued, Company Owned by the CFO
Related Party Transaction, Amounts of Transaction	$ 90,000	$ 90,000
Fees paid or accrued, Company Controlled by Directors
Related Party Transaction, Amounts of Transaction		4,113
Rent fees paid or accrued, Company Controlled by Major Shareholder
Related Party Transaction, Amounts of Transaction	$ 7,659	8,732
Royalty fees earned, Company Controlled by Major Shareholder
Related Party Transaction, Amounts of Transaction		$ 9,019

Unproved Mineral Properties D20

Unproved Mineral Properties Disclosure: Schedule of Unproved Mineral Properties (Details) - USD ($)	9 Months Ended
	Oct. 31, 2015	Jan. 31, 2015
Mineral claims, balance	$ 643,989	$ 640,653
Mineral claims, additions/payments	27,708
Mineral claims, property taxes	41,519
Mineral claims, effect of foreign currency translation	(57,476)
Mineral claims, write-down	(8,415)
Farellon Project
Mineral claims, balance	476,083	482,568
Mineral claims, additions/payments	27,708
Mineral claims, property taxes	8,757
Mineral claims, effect of foreign currency translation	(42,950)
Perth Project
Mineral claims, balance	14,829
Mineral claims, property taxes	16,413
Mineral claims, effect of foreign currency translation	(1,584)
Mateo Project
Mineral claims, balance	153,077	$ 158,085
Mineral claims, property taxes	16,349
Mineral claims, effect of foreign currency translation	(12,942)
Mineral claims, write-down	$ (8,415)

Unproved Mineral Properties D21

Unproved Mineral Properties Disclosure (Details)	9 Months Ended
	Oct. 31, 2015USD ($)
Details
Royalty payments received	$ 17,106
Royalty fees paid	$ 12,055

Unproved Mineral Properties D22

Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments (Details)	Oct. 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

Common Stock Disclosure_ Sche23

Common Stock Disclosure: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - shares	9 Months Ended
	Oct. 31, 2015	Jan. 31, 2015
Details
Warrants outstanding		267,335
Warrants expired	(267,335)

Common Stock Disclosure (Detail

Common Stock Disclosure (Details) - $ / shares	9 Months Ended	12 Months Ended
	Oct. 31, 2015	Jan. 31, 2015
Details
Number of options granted		1,200,000
Options exercisable price		$ 0.15
Weighted average life of the options	3 months 29 days
Weighted average exercise price of the options	$ 0.15