Red Metal Resources (RMESF) 10-Q 14 Sep 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jul. 31, 2016shares
Document and Entity Information:
Entity Registrant Name	RED METAL RESOURCES, LTD.
Document Type	10-Q
Document Period End Date	Jul. 31, 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	Q2
Trading Symbol	rmes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jul. 31, 2016	Jan. 31, 2016
Current Assets
Cash	$ 1,351	$ 2,161
Prepaids and other receivables	9,020	4,519
Total Current Assets	10,371	6,680
Equipment	2,902	3,107
Unproved mineral properties	552,543	460,539
Total Assets	565,816	470,326
Current Liabilities
Accounts payable	368,097	358,709
Accrued liabilities	155,590	131,577
Due to related parties	1,027,162	938,584
Notes payable	38,662	17,433
Notes payable to related parties	831,308	687,155
Total Current Liabilities	2,420,819	2,133,458
Total Liabilities	2,420,819	2,133,458
Stockholders' Equity
Common stock value	34,290	34,290
Additional paid-in capital	6,754,547	6,754,547
Deficit	(8,670,580)	(8,525,921)
Accumulated other comprehensive income (loss)	26,740	73,952
Total Stockholders' Equity (Deficit)	(1,855,003)	(1,663,132)
Total Liabilities and Stockholders' Equity (Deficit)	$ 565,816	$ 470,326

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 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		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Operating expenses
Amortization	$ 230	$ 337	$ 469	$ 693
Consulting fees	15,000	30,000	30,000	60,000
General and administrative	15,523	18,735	33,717	35,264
Interest on current debt	24,759	21,127	47,261	40,021
Mineral exploration costs	8,084	6,470	12,445	9,649
Professional fees	3,652	7,592	3,046	9,666
Rent	2,452	2,617	4,863	5,271
Regulatory	4,049	1,562	4,862	4,442
Salaries, wages and benefits	11,769	12,186	28,686	26,362
Foreign exchange gain (loss)	(17)	(213)	261	(913)
Impairment of unproved mineral properties				3,401
Total operating expenses	(85,501)	(100,413)	(165,610)	(193,856)
Other items
Other income	13,195	10,007	20,951	12,966
Net loss	(72,306)	(90,406)	(144,659)	(180,890)
Unrealized foreign exchange gain (loss)	38,892	28,254	(47,212)	(2,361)
Comprehensive income (loss)	$ (33,414)	$ (62,152)	$ (191,871)	$ (183,251)
Net loss per share - basic and diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted average number of shares outstanding - basic and diluted	34,290,302	33,456,969	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				(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)
Stock issued for mineral property, shares	833,333
Stock issued for mineral property, value	$ 833	24,167			25,000
Foreign exchange translation				62,583	62,583
Net income (loss) for the period			(331,398)		(331,398)
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				(47,212)	(47,212)
Net income (loss) for the period			(144,659)		(144,659)
Ending Balance, shares at Jul. 31, 2016	34,290,302
Ending Balance, amount at Jul. 31, 2016	$ 34,290	$ 6,754,547	$ (8,670,580)	$ 26,740	$ (1,855,003)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash Flows used in Operating Activities
Net loss	$ (144,659)	$ (180,890)
Adjustment to reconcile net loss to net cash used in operating activities:
Accrued interest on related party notes payable	30,250	23,687
Accrued interest on notes payable	1,452	128
Amortization	469	693
Impairment of unproved mineral properties		3,401
Changes in operating assets and liabilities:
Prepaids and other receivables	(4,329)	(5,800)
Accounts payable	6,006	(519)
Accrued liabilities	17,325	10,963
Due to related parties	41,838	25,901
Net cash used in operating activities	(51,648)	(122,436)
Cash Flows from Investing Activities
Acquisition of unproved mineral properties	47,906	59,531
Net cash provided by (used in) investing activities	(47,906)	(59,531)
Cash Flows from Financing Activities
Cash received on issuance of notes payable to related party	85,839	167,576
Cash received on issuance of notes payable	11,533	16,619
Net cash provided by financing activities	97,372	184,195
Effect of foreign currency exchange	1,372	(1,599)
Increase (decrease) in cash	(810)	629
Cash, beginning of period	2,161	4,440
Cash, end of period	1,351	5,069
Supplemental Disclosure of Cash Flow Information:
Income tax
Interest

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jul. 31, 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 and six month periods ended July 31, 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	6 Months Ended
	Jul. 31, 2016
Notes
Related-Party Transactions Disclosure	NOTE 2 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: July 31, 2016 January 31, 2016 Due to a company owned by an officer (a) $ 596,949 $ 553,991 Due to a company controlled by directors (b) 330,838 299,761 Due to a company controlled by a major shareholder (a) 62,697 51,201 Due to a major shareholder (a) 36,678 33,631 Total due to related parties $ 1,027,162 $ 938,584 Note payable to the Chief Executive Officer (“CEO”) (c) $ 291,462 $ 257,081 Note payable to the Chief Financial Officer (“CFO”) (c) 12,173 11,698 Note payable to a major shareholder (c) 396,211 301,360 Note payable to a company controlled by directors (c) 131,462 117,016 Total notes payable to related parties $ 831,308 $ 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 six months ended July 31, 2016, the Company accrued $30,250 Transactions with Related Parties During the six months ended July 31, 2016 and 2015, the Company incurred the following expenses with related parties: July 31, 2016 July 31, 2015 Consulting fees paid or accrued to a company owned by the CFO $ 30,000 $ 60,000 Rent fees paid or accrued to a company controlled by a major shareholder $ 4,863 $ 5,271

Unproved Mineral Properties Dis

Unproved Mineral Properties Disclosure	6 Months Ended
	Jul. 31, 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 July 31, 2016 Farellon Project Farellon Alto 1-8(1) $ 371,811 $ - $ 3,307 $ 33,827 $ 408,945 Quina 48,160 - 1,683 4,431 54,274 Exeter 26,208 25,000 1,576 3,850 56,634 446,179 25,000 6,566 42,108 519,853 Perth Project 14,360 1,237 15,103 1,990 32,690 Total Costs $ 460,539 $ 26,237 $ 21,669 $ 44,098 $ 552,543 (1) During the six month period ended July 31, 2016, the Company received $20,951

Common Stock Disclosure

Common Stock Disclosure	6 Months Ended
	Jul. 31, 2016
Notes
Common Stock Disclosure	NOTE 4 - COMMON STOCK During the six months ended July 31, 2016, the Company did not have any transactions that resulted in issuance of its common stock, or warrants or options to acquire its common stock. As at July 31, 2016, the Company had 34,290,302

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 31, 2016
Notes
Subsequent Events	NOTE 5 - SUBSEQUENT EVENTS On August 24, 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 CAD$10,000 (USD$7,728) (the “Loan”). The Loan is unsecured, due on demand, with interest payable at a rate of 8%

Related-Party Transactions Di12

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Tables)	6 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Related Party Transactions	July 31, 2016 January 31, 2016 Due to a company owned by an officer (a) $ 596,949 $ 553,991 Due to a company controlled by directors (b) 330,838 299,761 Due to a company controlled by a major shareholder (a) 62,697 51,201 Due to a major shareholder (a) 36,678 33,631 Total due to related parties $ 1,027,162 $ 938,584 Note payable to the Chief Executive Officer (“CEO”) (c) $ 291,462 $ 257,081 Note payable to the Chief Financial Officer (“CFO”) (c) 12,173 11,698 Note payable to a major shareholder (c) 396,211 301,360 Note payable to a company controlled by directors (c) 131,462 117,016 Total notes payable to related parties $ 831,308 $ 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)	6 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Transactions with Related Parties	July 31, 2016 July 31, 2015 Consulting fees paid or accrued to a company owned by the CFO $ 30,000 $ 60,000 Rent fees paid or accrued to a company controlled by a major shareholder $ 4,863 $ 5,271

Unproved Mineral Properties D14

Unproved Mineral Properties Disclosure: Schedule of Unproved Propertiies (Tables)	6 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Unproved Propertiies	Mineral Claims January 31, 2016 Additions/ Payments Property Taxes Paid/ Accrued Effect of foreign currency translation July 31, 2016 Farellon Project Farellon Alto 1-8(1) $ 371,811 $ - $ 3,307 $ 33,827 $ 408,945 Quina 48,160 - 1,683 4,431 54,274 Exeter 26,208 25,000 1,576 3,850 56,634 446,179 25,000 6,566 42,108 519,853 Perth Project 14,360 1,237 15,103 1,990 32,690 Total Costs $ 460,539 $ 26,237 $ 21,669 $ 44,098 $ 552,543

Related-Party Transactions Di15

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Details) - USD ($)	Jul. 31, 2016	Jan. 31, 2016
Due to related party	$ 1,027,162	$ 938,584
Notes payable to related party	831,308	687,155
Company Owned by Officer
Due to related party	596,949	553,991
Company Controlled by Directors
Due to related party	330,838	299,761
Notes payable to related party	131,462	117,016
Company Controlled by Major Shareholder
Due to related party	62,697	51,201
Majority Shareholder
Due to related party	36,678	33,631
Notes payable to related party	396,211	301,360
CEO
Notes payable to related party	291,462	257,081
CFO
Notes payable to related party	$ 12,173	$ 11,698

Related-Party Transactions Di16

Related-Party Transactions Disclosure (Details) - USD ($)	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Notes payable to related parties
Interest expense accrued with related parties	$ 30,250	$ 23,687
Trade accounts payable with related parties
Interest expense accrued with related parties	$ 7,151	$ 7,451

Related-Party Transactions Di17

Related-Party Transactions Disclosure: Schedule of Transactions with Related Parties (Details) - USD ($)	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Consulting fees paid or accrued, Company Owned by the CFO
Related Party Transaction, Amounts of Transaction	$ 30,000	$ 60,000
Rent fees paid or accrued, Company Controlled by Major Shareholder
Related Party Transaction, Amounts of Transaction	$ 4,863	$ 5,271

Unproved Mineral Properties D18

Unproved Mineral Properties Disclosure: Schedule of Unproved Propertiies (Details) - USD ($)	6 Months Ended
	Jul. 31, 2016	Jan. 31, 2016
Mineral claims, balance	$ 552,543	$ 460,539
Mineral claims, additions/payments	26,237
Property taxes paid/accrued	21,669
Mineral claims, effect of foreign currency translation	44,098
Farellon Project
Mineral claims, balance	519,853	446,179
Mineral claims, additions/payments	25,000
Property taxes paid/accrued	6,566
Mineral claims, effect of foreign currency translation	42,108
Perth Project
Mineral claims, balance	32,690	$ 14,360
Mineral claims, additions/payments	1,237
Property taxes paid/accrued	15,103
Mineral claims, effect of foreign currency translation	$ 1,990

Unproved Mineral Properties D19

Unproved Mineral Properties Disclosure (Details) - USD ($)	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Royalty payments received	$ 20,951	$ 12,966
Royalty fees paid	$ 9,939	$ 8,698

Common Stock Disclosure (Detail

Common Stock Disclosure (Details) - shares	Jul. 31, 2016	Jan. 31, 2016
Details
Common shares issued and outstanding	34,290,302	34,290,302

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended	6 Months Ended
	Aug. 24, 2016	Jul. 31, 2016	Jul. 31, 2015
Details
Loan from related party	$ 7,728	$ 85,839	$ 167,576
Loan interest rate per annum	8.00%