Red Metal Resources (RMESF) 10-Q 14 Jun 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 30, 2016shares
Document and Entity Information:
Entity Registrant Name	RED METAL RESOURCES, LTD.
Document Type	10-Q
Document Period End Date	Apr. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,358,654
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding	34,290,302
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	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	rmes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 30, 2016	Jan. 31, 2016
Current Assets
Cash	$ 10,337	$ 2,161
Prepaids and other receivables	4,093	4,519
Total Current Assets	14,430	6,680
Equipment	3,114	3,107
Unproved mineral properties	500,365	460,539
Total Assets	517,909	470,326
Current Liabilities
Accounts payable	359,555	358,709
Accrued liabilities	143,452	131,577
Due to related parties	1,024,809	938,584
Notes payable	37,600	17,433
Notes payable to related parties	774,082	687,155
Total Current Liabilities	2,339,498	2,133,458
Total Liabilities	2,339,498	2,133,458
Stockholders' Equity
Common stock value	34,290	34,290
Additional paid-in capital	6,754,547	6,754,547
Deficit	(8,598,274)	(8,525,921)
Accumulated other comprehensive income (loss)	(12,152)	73,952
Total Stockholders' Equity (Deficit)	(1,821,589)	(1,663,132)
Total Liabilities and Stockholders' Equity (Deficit)	$ 517,909	$ 470,326

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2016	Jan. 31, 2016
Balance Sheet
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	34,290,302	34,290,302
Common stock, shares outstanding	34,290,302	34,290,302

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Operating expenses
Amortization	$ 239	$ 356
Consulting fees	15,000	30,000
General and administrative	18,194	16,529
Interest on current debt	22,502	18,894
Mineral exploration costs	4,361	3,179
Professional fees	(606)	2,074
Rent	2,411	2,654
Regulatory	813	2,880
Salaries, wages and benefits	16,917	14,176
Foreign exchange gain (loss)	278	(700)
Impairment of unproved mineral properties		3,401
Total operating expenses	(80,109)	(93,443)
Other items
Other income	7,756	2,959
Net loss	(72,353)	(90,484)
Unrealized foreign exchange gain (loss)	(86,104)	(30,615)
Comprehensive income (loss)	$ (158,457)	$ (121,099)
Net loss per share - basic and diluted	$ 0	$ 0
Weighted average number of shares outstanding - basic and diluted	34,290,302	33,456,969

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, 2015	33,456,969
Beginning Balance, amount at Jan. 31, 2015	$ 33,457	$ 6,730,380	$ (8,013,633)	$ 13,730	$ (1,236,066)
Foreign exchange translation				(30,615)	(30,615)
Net income (loss) for the period			(90,484)		(90,484)
Ending Balance, shares at Apr. 30, 2015	33,456,969
Ending Balance, amount at Apr. 30, 2015	$ 33,457	6,730,380	(8,104,117)	(16,885)	(1,357,165)
Stock issued for mineral property, shares	833,333
Stock issued for mineral property, value	$ 833	24,167			25,000
Foreign exchange translation				90,837	90,837
Net income (loss) for the period			(421,804)		(421,804)
Ending Balance, shares at Jan. 31, 2016	34,290,302
Ending Balance, amount at Jan. 31, 2016	$ 34,290	6,754,547	(8,525,921)	73,952	(1,663,132)
Foreign exchange translation				(86,104)	(86,104)
Net income (loss) for the period			(72,353)		(72,353)
Ending Balance, shares at Apr. 30, 2016	34,290,302
Ending Balance, amount at Apr. 30, 2016	$ 34,290	$ 6,754,547	$ (8,598,274)	$ (12,152)	$ (1,821,589)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash Flows used in Operating Activities
Net loss	$ (72,353)	$ (90,484)
Adjustment to reconcile net loss to net cash used in operating activities:
Amortization	239	356
Impairment of unproved mineral properties		3,401
Accrued interest on notes payable	14,799	10,689
Changes in operating assets and liabilities:
Prepaids and other receivables	384	(5,275)
Accounts payable	119	(19,860)
Accrued liabilities	6,006	11,248
Due to related parties	20,993	(11,551)
Net cash used in operating activities	(29,813)	(101,476)
Cash Flows from Investing Activities
Acquisition of unproved mineral properties	1,878	276
Net cash provided by (used in) investing activities	(1,878)	(276)
Cash Flows from Financing Activities
Cash received on issuance of notes payable to related party	28,979	104,991
Cash received on issuance of notes payable	11,533
Net cash provided by financing activities	40,512	104,991
Effect of foreign currency exchange	(645)	(2,211)
Increase (decrease) in cash	8,176	1,028
Cash, beginning of period	2,161	4,440
Cash, end of period	$ 10,337	$ 5,468
Supplemental Disclosure of Cash Flow Information:
Income tax
Interest

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Apr. 30, 2016
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”) 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, 2016, 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 month period ended April 30, 2016 are not necessarily indicative of the results that may be expected for the year ending January 31, 2017.

Related-party Transactions Disc

Related-party Transactions Disclosure	3 Months Ended
	Apr. 30, 2016
Notes
Related-party Transactions Disclosure	NOTE 2 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: April 30, 2016 January 31, 2016 Due to a company owned by an officer (a) $ 588,828 $ 553,991 Due to a company controlled by directors (b) 340,030 299,761 Due to a company controlled by a major shareholder (a) 59,556 51,201 Due to a major shareholder (a) 36,395 33,631 Total due to related parties $ 1,024,809 $ 938,584 Note payable to the Chief Executive Officer (“CEO”) (c) $ 293,503 $ 257,081 Note payable to the Chief Financial Officer (“CFO”) (c) 11,931 11,698 Note payable to a major shareholder (c) 334,750 301,360 Note payable to a company controlled by directors (c) 133,898 117,016 Total notes payable to related parties $ 774,082 $ 687,155 (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 three months ended April 30, 2016, the Company accrued $14,095 (April 30, 2015 - $10,689) in interest expense on the notes payable to related parties. During the same time, the Company accrued $3,494 (April 30, 2015 - $4,095) in interest expense on trade accounts payable with related parties. Transactions with Related Parties During the three months ended April 30, 2016 and 2015, the Company incurred the following expenses with related parties: April 30, 2016 April 30, 2015 Consulting fees paid or accrued to a company owned by the CFO $ 15,000 $ 30,000 Rent fees paid or accrued to a company controlled by a major shareholder $ 2,411 $ 2,654

Unproved Mineral Properties Dis

Unproved Mineral Properties Disclosure	3 Months Ended
	Apr. 30, 2016
Notes
Unproved Mineral Properties Disclosure	NOTE 3 - UNPROVED MINERAL PROPERTIES Mineral Claims January 31, 2016 Additions/ Payments Property Taxes Paid/ Accrued Effect of foreign currency translation April 30, 2016 Farellon Project Farellon Alto 1-8(1) $ 371,811 $ - $ 263 $ 30,571 $ 402,645 Quina 48,160 - - 3,958 52,118 Exeter 26,208 - - 2,154 28,362 446,179 - 263 36,683 483,125 Perth Project 14,360 1,237 378 1,265 17,240 Total Costs $ 460,539 $ 1,237 $ 641 $ 37,948 $ 500,365 (1) During the three month period ended April 30, 2016, the Company received $7,756 (2015 - $2,959) in royalty payments from a minerals extracted during the small scale mining operations that were carried out by a third-party; these payments were recorded as other income. During the same period the Company paid $4,312 (2015 - $2,959) in royalty payments to the original vendor of the Farellon Alto 1-8, which were recorded as part of mineral exploration costs.

Common Stock Disclosure

Common Stock Disclosure	3 Months Ended
	Apr. 30, 2016
Notes
Common Stock Disclosure	NOTE 4 - COMMON STOCK During the three months ended April 30, 2016, the Company did not have any transactions that resulted in issuance of its common stock. In addition, during the same period the Company did not have any transactions that resulted in grant of warrants or options to acquire its common stock. During the three months ended April 30, 2016, 1,200,000 options with a weighted average exercise price of $0.15 expired unexercised. As at April 30, 2016, the Company had 34,290,302 common shares issued and outstanding, with no warrants or options issued and exercisable.

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 30, 2016
Notes
Subsequent Events	NOTE 5 - SUBSEQUENT EVENTS On May 16, 2016, the Company entered into a loan agreement with Richard Jeffs, a significant shareholder of the Company, for a loan in the principal amount of $25,000 (the “Loan”). The Loan is unsecured, due on demand, with interest payable at a rate of 8% per annum. The full proceeds from the Loan were used to pay the second option payment under the Company’s option agreement to acquire the Exeter claim.

Related-party Transactions Di12

Related-party Transactions Disclosure: Schedule of Related Party Transactions (Tables)	3 Months Ended
	Apr. 30, 2016
Tables/Schedules
Schedule of Related Party Transactions	April 30, 2016 January 31, 2016 Due to a company owned by an officer (a) $ 588,828 $ 553,991 Due to a company controlled by directors (b) 340,030 299,761 Due to a company controlled by a major shareholder (a) 59,556 51,201 Due to a major shareholder (a) 36,395 33,631 Total due to related parties $ 1,024,809 $ 938,584 Note payable to the Chief Executive Officer (“CEO”) (c) $ 293,503 $ 257,081 Note payable to the Chief Financial Officer (“CFO”) (c) 11,931 11,698 Note payable to a major shareholder (c) 334,750 301,360 Note payable to a company controlled by directors (c) 133,898 117,016 Total notes payable to related parties $ 774,082 $ 687,155 (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 Di13

Related-party Transactions Disclosure: Schedule of Transactions with Related Parties (Tables)	3 Months Ended
	Apr. 30, 2016
Tables/Schedules
Schedule of Transactions with Related Parties	April 30, 2016 April 30, 2015 Consulting fees paid or accrued to a company owned by the CFO $ 15,000 $ 30,000 Rent fees paid or accrued to a company controlled by a major shareholder $ 2,411 $ 2,654

Unproved Mineral Properties D14

Unproved Mineral Properties Disclosure: Schedule of Unproved Propertiies (Tables)	3 Months Ended
	Apr. 30, 2016
Tables/Schedules
Schedule of Unproved Propertiies	Mineral Claims January 31, 2016 Additions/ Payments Property Taxes Paid/ Accrued Effect of foreign currency translation April 30, 2016 Farellon Project Farellon Alto 1-8(1) $ 371,811 $ - $ 263 $ 30,571 $ 402,645 Quina 48,160 - - 3,958 52,118 Exeter 26,208 - - 2,154 28,362 446,179 - 263 36,683 483,125 Perth Project 14,360 1,237 378 1,265 17,240 Total Costs $ 460,539 $ 1,237 $ 641 $ 37,948 $ 500,365

Related-party Transactions Di15

Related-party Transactions Disclosure: Schedule of Related Party Transactions (Details) - USD ($)	Apr. 30, 2016	Jan. 31, 2016
Due to related party	$ 1,024,809	$ 938,584
Notes payable to related party	774,082	687,155
Company Owned by Officer
Due to related party	588,828	553,991
Company Controlled by Directors
Due to related party	340,030	299,761
Notes payable to related party	133,898	117,016
Company Controlled by Major Shareholder
Due to related party	59,556	51,201
Majority Shareholder
Due to related party	36,395	33,631
Notes payable to related party	334,750	301,360
CEO
Notes payable to related party	293,503	257,081
CFO
Notes payable to related party	$ 11,931	$ 11,698

Related-party Transactions Di16

Related-party Transactions Disclosure (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Notes payable to related parties
Interest expense accrued with related parties	$ 14,095	$ 10,689
Trade accounts payable with related parties
Interest expense accrued with related parties	$ 3,494	$ 4,095

Related-party Transactions Di17

Related-party Transactions Disclosure: Schedule of Transactions with Related Parties (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Consulting fees paid or accrued, Company Owned by the CFO
Related Party Transaction, Amounts of Transaction	$ 15,000	$ 30,000
Rent fees paid or accrued, Company Controlled by Major Shareholder
Related Party Transaction, Amounts of Transaction	$ 2,411	$ 2,654

Unproved Mineral Properties D18

Unproved Mineral Properties Disclosure: Schedule of Unproved Propertiies (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Jan. 31, 2016
Mineral claims, balance	$ 500,365	$ 460,539
Property taxes paid/accrued	641
Mineral claims, effect of foreign currency translation	37,948
Mineral claims, additions/payments	1,237
Farellon Project
Mineral claims, balance	483,125	446,179
Property taxes paid/accrued	263
Mineral claims, effect of foreign currency translation	36,683
Perth Project
Mineral claims, balance	17,240	$ 14,360
Property taxes paid/accrued	378
Mineral claims, effect of foreign currency translation	1,265
Mineral claims, additions/payments	$ 1,237

Unproved Mineral Properties D19

Unproved Mineral Properties Disclosure (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Details
Royalty payments received	$ 7,756	$ 2,959
Royalty fees paid	$ 4,312	$ 2,959

Common Stock Disclosure (Detail

Common Stock Disclosure (Details) - $ / shares	3 Months Ended
	Apr. 30, 2016	Jan. 31, 2016
Details
Options that expired unexercised	1,200,000
Weighted average exercise price of expired unexercised options	$ 0.15
Common shares issued and outstanding	34,290,302	34,290,302

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	May 16, 2016	Apr. 30, 2016	Apr. 30, 2015
Details
Loan from related party	$ 25,000	$ 28,979	$ 104,991
Loan interest rate per annum	8.00%