Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2019 | |
Details | |||
Registrant CIK | 0001358654 | ||
Fiscal Year End | --01-31 | ||
Registrant Name | RED METAL RESOURCES, LTD. | ||
SEC Form | 10-K | ||
Period End date | Jan. 31, 2020 | ||
Tax Identification Number (TIN) | 20-2138504 | ||
Number of common stock shares outstanding | 41,218,008 | ||
Public Float | $ 754,498 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Entity File Number | 000-52055 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 278 Bay Street, Suite 102 | ||
Entity Address, City or Town | Thunder Bay | ||
Entity Address, State or Province | ON | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | P7B 1R8 | ||
City Area Code | 807 | ||
Local Phone Number | 345-7384 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets | ||
Cash | $ 9,865 | $ 8,686 |
Prepaids and other receivables | 5,764 | 1,838 |
Total current assets | 15,629 | 10,524 |
Equipment | 798 | 1,305 |
Unproved mineral properties | 653,117 | 730,549 |
Total assets | 669,544 | 742,378 |
Current liabilities | ||
Accounts payable | 239,098 | 216,926 |
Accrued liabilities | 168,927 | 133,383 |
Due to related parties | 7,282 | 1,849 |
Notes payable | 24,451 | 27,019 |
Total current liabilities | 439,758 | 379,177 |
Long-term notes to related parties | 715,842 | 613,540 |
Total liabilities | 1,155,600 | 992,717 |
Stockholders' deficit | ||
Common stock, $0.001 par value, authorized 500,000,000,41,218,008 and 37,504,588 issued and outstanding at January 31, 2020 and 2019, respectively | 41,217 | 37,504 |
Additional paid-in capital | 9,132,068 | 8,968,677 |
Deficit | (9,584,892) | (9,263,300) |
Accumulated other comprehensive income (loss) | (74,449) | 6,780 |
Total stockholders' deficit | (486,056) | (250,339) |
Total liabilities and stockholders' deficit | $ 669,544 | $ 742,378 |
CONSOLIDATED BALANCE SHEETS - P
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares | Jan. 31, 2020 | Jan. 31, 2019 |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 41,218,008 | 37,504,588 |
Common Stock, Shares, Outstanding | 41,218,008 | 37,504,588 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Operating expenses: | ||
Amortization | $ 328 | $ 492 |
Consulting fees | 0 | 30,000 |
General and administrative | 74,608 | 56,165 |
Mineral exploration costs | 41,775 | 15,432 |
Professional fees | 70,420 | 41,784 |
Rent | 0 | 5,099 |
Regulatory | 9,095 | 7,770 |
Salaries, wages and benefits | 64,665 | 64,507 |
Total operating expenses | 260,891 | 221,249 |
Other items | ||
Foreign exchange gain (loss) | 189 | 4,062 |
Forgiveness of debt | 0 | 162,723 |
Interest on notes payable | (60,890) | (79,598) |
Net loss | (321,592) | (134,062) |
Unrealized foreign exchange gain (loss) | (81,229) | 27,128 |
Comprehensive loss | $ (402,821) | $ (106,934) |
Net loss per share - basic and diluted | $ (0.01) | $ 0 |
Weighted average number of sharesoutstanding - basic and diluted | 37,514,762 | 37,504,588 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Total |
Equity Balance at Jan. 31, 2018 | $ 35,004 | $ 6,803,833 | $ (9,129,238) | $ (20,348) | $ (2,310,749) |
Equity Balance, Shares at Jan. 31, 2018 | 35,004,588 | ||||
Stock issued for cash, value | $ 2,500 | 185,000 | 0 | 0 | 187,500 |
Stock issued for cash, shares | 2,500,000 | ||||
Extinguishment of related party debt | $ 0 | 1,979,844 | 0 | 0 | 1,979,844 |
Net income (loss) for the period | 0 | 0 | (134,062) | 0 | (134,062) |
Foreign exchange translation | $ 0 | 0 | 0 | 27,128 | 27,128 |
Equity Balance, Shares at Jan. 31, 2019 | 37,504,588 | ||||
Equity Balance at Jan. 31, 2019 | $ 37,504 | 8,968,677 | (9,263,300) | 6,780 | (250,339) |
Stock issued for debt, value | $ 3,713 | 163,391 | 0 | 0 | $ 167,104 |
Stock issued for debt, shares | 3,713,420 | 3,713,420 | |||
Net income (loss) for the period | $ 0 | 0 | (321,592) | 0 | $ (321,592) |
Foreign exchange translation | $ 0 | 0 | 0 | (81,229) | (81,229) |
Equity Balance, Shares at Jan. 31, 2020 | 41,218,008 | ||||
Equity Balance at Jan. 31, 2020 | $ 41,217 | $ 9,132,068 | $ (9,584,892) | $ (74,449) | $ (486,056) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows used in operating activities: | ||
Net loss | $ (321,592) | $ (134,062) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accrued interest on related party notes payable | 58,787 | 70,138 |
Accrued interest on related party payables | 0 | 7,061 |
Accrued interest on notes payable | 2,103 | 2,399 |
Amortization | 328 | 492 |
Forgiveness of debt | 0 | (162,723) |
Changes in operating assets and liabilities: | ||
Prepaids and other receivables: | (307) | 4,751 |
Accounts payable: | 41,950 | 1,793 |
Accrued liabilities: | 54,271 | (35,746) |
Due to related parties: | 5,486 | 36,962 |
Cash paid for interest on notes payable | 0 | (4,646) |
Net cash used in operating activities | (158,974) | (213,581) |
Cash flows used in investing activities: | ||
Acquisition of unproved mineral properties | (50,000) | (103,530) |
Net cash used in investing activities | (50,000) | (103,530) |
Cash flows provided by financing activities: | ||
Cash received on issuance of notes payable to related parties | 213,750 | 142,142 |
Issuance of common stock for private placements | 0 | 187,500 |
Cash paid for notes payable | 0 | (2,130) |
Net cash provided by financing activities | 213,750 | 327,512 |
Effects of foreign currency exchange | (3,597) | (4,107) |
Increase in cash | 1,179 | 6,294 |
Cash, beginning | 8,686 | 2,392 |
Cash, ending | 9,865 | 8,686 |
Supplemental disclosures: | ||
Income tax | 0 | 0 |
Interest | $ 0 | $ 4,646 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Jan. 31, 2020 | |
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) organized 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. The Companys consolidated financial statements are prepared on a going concern basis in accordance with US generally accepted accounting principles (GAAP) which contemplates the realization of assets and discharge of liabilities and commitments in the normal course of business. The Company has generated only minimal income to date and has accumulated losses of $9,584,892 since inception. The Company has funded its operations through the issuance of capital stock and debt. Management plans to raise additional funds through equity and/or debt financings, and by entering into joint venture agreements. There is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company to continue operating as a going concern. The Companys ability to continue its operations as a going concern, realize the carrying value of its assets, and discharge its liabilities in the normal course of business is dependent upon its ability to raise new capital sufficient to fund its commitments and ongoing losses, the continued financial support from related party creditors, and ultimately on generating profitable operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These consolidated financial statements and related notes are presented in accordance with US GAAP and are expressed in United States dollars. The Company has not produced revenues from its principal business. These financial statements include the accounts of the Company and its subsidiary, Polymet. All intercompany transactions and balances have been eliminated. Reclassifications Certain comparative amounts in the accompanying consolidated financial statements have been reclassified to conform to the current years presentation. These reclassifications had no effect on the consolidated results of operations or financial position for any year presented. Accounting Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain of the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to carrying values of unproved mineral properties, asset retirement obligations, fair value of stock-based transactions, and recognition of deferred tax assets or liabilities. Fair Value of Financial Instruments The carrying amounts reflected in the balance sheets for cash, other receivables, accounts payable, and amounts due to related parties approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. The fair value hierarchy under US GAAP is based on the following three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1: Level 2: Level 3: The Companys notes payable to related and arms-length parties are based on Level 2 inputs in the ASC 820 fair value hierarchy. The notes payable and notes payable to related parties accumulate interest at a rate of 8% per annum. Asset Retirement Obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs an obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The estimated fair value of the asset retirement obligation is based on the current cost escalated at an inflation rate and discounted at a credit adjusted risk-free rate. This liability is capitalized as part of the cost of the related asset and amortized over its useful life. The liability accretes until the Company settles the obligation. To date the Company has not incurred any asset retirement obligations. Long Lived Assets The carrying value of long-lived assets, other than mineral properties, is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. Foreign Currency Translation and Transaction The functional currency for the Company and the Companys foreign subsidiary is the US dollar and the Chilean peso, respectively. The Company translates assets and liabilities to US dollars using year-end exchange rates and translates revenues and expenses using average exchange rates during the period. Exchange gains and losses arising from the translation of foreign entity financial statements are included as a component of other comprehensive income (loss). Transactions denominated in currencies other than the functional currency of the legal entity are re-measured to the functional currency of the legal entity at the year-end exchange rates. Any associated transactional currency re-measurement gains and losses are recognized in current operations. Income Taxes Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company accounts for uncertainty in income taxes by applying a two-step method. First, it evaluates whether a tax position has met a more likely than not recognition threshold, and second, it measures that tax position to determine the amount of benefit, if any, to be recognized in the financial statements. The application of this method did not have a material effect on the Company's financial statements. Loss per Share The Company presents both basic and diluted loss per share (LPS) on the face of the statements of operations. Basic LPS is computed by dividing net loss available to common shareholders by the weighted average number of shares outstanding during the year. Diluted LPS gives effect to all dilutive potential common shares outstanding during the period including convertible debt, stock options, and warrants, using the treasury stock method. Diluted LPS excludes all dilutive potential shares if their effect is anti-dilutive. Mineral Properties The Company capitalizes all property acquisition costs (including option payments). Mineral exploration costs and costs associated with maintenance of the claims are expensed as incurred until commercially mineable deposits are determined to exist within a particular property. Option payments are considered acquisition costs provided that the Company has the intention of exercising the underlying option. Property option agreements are exercisable entirely at the option of the optionee. Therefore, option payments (or recoveries) are recorded when payment is made (or received) and are not accrued. Mineral properties are tested for impairment if facts or circumstances indicate that impairment exists. Examples of such facts and circumstances are as follows: · · · · After technical feasibility and commercial viability of extracting a mineral resource are demonstrable the capitalized balance, net of any impairment recognized, is then reclassified to either tangible or intangible mine development assets according to the nature of the asset. Although the Company has taken steps that it considers adequate to verify title to mineral properties which it has an interest in, these procedures do not guarantee the Companys title. Title to mineral properties in foreign jurisdictions is subject to uncertainty and consequently, such properties may be subject to prior undetected agreements or transfers and title may be affected by such instances. Equipment Equipment is recorded at cost and is being amortized over its estimated useful lives using the declining balance method at 30% per year. Royalty Income Royalty payments received from authorized contractors are recognized when the risks and rewards of ownership to delivered concentrate pass to the buyer and collection is reasonably assured. Stock Options and Other Share-Based Compensation For equity awards, such as stock options, total compensation cost is based on the grant date fair value and for liability awards, such as stock appreciation rights, total compensation cost is based on the settlement value. The Company recognizes stock-based compensation expense for all awards over the service period required to earn the award, which is the shorter of the vesting period or the time period an employee becomes eligible to retain the award at retirement, adjusted for the expected rate of forfeiture of the equity awards granted. Recently Adopted Accounting Guidance Recent accounting pronouncements issued by the Financial Accounting Standards Board or other authoritative standards groups with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company. |
Related-Party Transactions Disc
Related-Party Transactions Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Related-Party Transactions Disclosure | NOTE 3 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: January 31, 2020 January 31, 2019 Due to a company owned by an officer (a) $ 110 $ 25 Due to a company controlled by directors (b) 7,172 1,824 Total due to related parties $ 7,282 $ 1,849 (a) (b) During the year ended January 31, 2020, the Company did not incur any interest on outstanding amounts payable to related parties. During the year ended January 31, 2019, the Company accrued $7,061 in interest expense on outstanding amounts payable to related parties. During the year ended January 31, 2019, the Companys related parties agreed to forgive a total of $1,206,055 the Company owed for services provided by related parties. The $1,206,055 gain resulting from the extinguishment of debt was recorded in additional paid-in capital. The details of debt forgiveness are as follows: Amounts due for services: Debt forgiven by the company owned by an officer $ 721,947 Debt forgiven by the company controlled by directors 361,163 Debt forgiven by the company controlled by a major shareholder 85,374 Debt forgiven by the major shareholder 37,571 Total debt forgiven by related parties $ 1,206,055 Transactions with Related Parties During the years ended January 31, 2020 and 2019, the Company incurred the following expenses with related parties: January 31, 2020 January 31, 2019 Consulting fees paid or accrued to a company owned by the CFO $ - $ 30,000 Rent fees accrued to a company controlled by a major shareholder $ - $ 5,184 Notes Payable Issued to Related Parties The following amounts were due under the notes payable the Company issued to related parties: January 31, 2020 January 31, 2019 Notes payable to the Chief Executive Officer (CEO) (c) $ 502,575 $ 502,448 Note payable to the Chief Financial Officer (CFO) (c) 9,583 8,849 Note payable to a major shareholder (c) 93,701 - Note payable to a company controlled by directors (c) 109,984 102,243 Total notes payable to related parties (d) $ 715,842 $ 613,540 (c) (d) During the year ended January 31, 2020, the Company accrued $58,787 (January 31, 2019 - $70,138) in interest expense on the notes payable to related parties. On January 30, 2020, the Companys CEO and President agreed to convert a total of $167,104, representing $154,845 in principal the Company owed to her under the demand notes payable and $12,259 in interest accrued thereon, into 3,713,420 shares of the Companys common stock at a deemed price of $0.045 per share. At the time of conversion, the fair market value of the common shares of the Company was $0.05, which resulted in a loss on conversion of $18,567, which was recorded as part of additional paid-in capital (Note 6). During the year ended January 31, 2019, related parties agreed to forgive a total of $773,789 the Company owed to them under the demand notes payable. The $773,789 gain resulting from the extinguishment of debt was recorded in additional paid-in capital. The details of forgiveness of the notes payable are as follows: Amounts due for Principal Accrued Interest Accrued interest on note payable to the CEO $ - $ 127,674 Accrued interest on note payable to the CFO - 5,777 Note payable including accrued interest to a major shareholder 456,369 128,666 Accrued interest on note payable to the company controlled by directors - 55,303 Total notes payable and accrued interest forgiven by related parties $ 456,369 $ 317,420 |
Foregiveness of Debt Disclosure
Foregiveness of Debt Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Foregiveness of Debt Disclosure | NOTE 4 -FORGIVENESS OF DEBT During the year ended January 31, 2019, the Company reached an agreement with certain service providers to forgive portion of debt the Company owed to them as at July 31, 2018. As a result of these agreements, the Company recognized $124,512 as forgiveness of debt. In addition, at July 31, 2018, the Company recorded an additional $38,211 as forgiveness of debt associated with reversal of old debt which exceeded the statute of limitations. |
Unproved Mineral Properties Dis
Unproved Mineral Properties Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Unproved Mineral Properties Disclosure | NOTE 5 - UNPROVED MINERAL PROPERTIES The following are the schedules of the Companys unproved mineral properties as at January 31, 2020 and 2019: Mineral Claims at January 31, 2020 January 31, 2019 Additions/ Payments Effect of foreign currency translation January 31, 2020 Farellon Project Farellon Alto 1-8 (1) $ 411,268 $ - $ (67,620) $ 343,648 Quina 158,519 - (26,064) 132,455 Exeter 109,584 50,000 (25,054) 134,530 679,371 50,000 (118,738) 610,633 Perth Project 51,178 - (8,694) 42,484 Total Costs $ 730,549 $ 50,000 $ (127,432) $ 653,117 Mineral Claims at January 31, 2019 January 31, 2018 Additions/ Payments Effect of foreign currency translation January 31, 2019 Farellon Project Farellon Alto 1-8 (1) $ 443,027 $ 10,635 $ (42,394) $ 411,268 Quina 117,145 51,962 (10,588) 158,519 Exeter 92,741 26,837 (9,994) 109,584 652,913 89,434 (62,976) 679,371 Perth Project 41,703 14,096 (4,621) 51,178 Total Costs $ 694,616 $ 103,530 $ (67,597) $ 730,549 Farellon Project, Quina Claim On December 15, 2014, the Company entered into an option agreement to earn a 100% interest in the Quina 1-56 Claim (the Quina Option). In order to exercise the Quina Option, the Company was required to pay $150,000 over a four-year-period (the Quina Option Payment), of which $100,000 could have been paid in combination of shares and cash, as detailed in the following schedule: Date Option Payment Shares Issued Upon execution of the option agreement (Execution date) $ 25,000 500,000 12 months subsequent to the Execution date 25,000 833,333 24 months subsequent to the Execution date 25,000 357,143 36 months subsequent to the Execution date 25,000 357,143 48 months subsequent to the Execution date (paid in cash) 50,000 n/a Total $ 150,000 2,047,619 The number of shares issued for each option payment was determined based on the average trading price of the Companys shares during a 30-day period prior to the payment. As of January 31, 2020, the Company had exercised its Quina Option and holds 100% interest in Quina Claim. In addition to the Quina Option Payment, the Company agreed to pay a 1.5% royalty from net smelter returns (NSR) on the Quina Claim, which can be bought out for a one-time payment of $1,500,000. Farellon Project, Exeter Claim On June 3, 2015, Polymet entered into an option agreement, made effective on June 15, 2015, to earn 100% interest in a mining exploration claim 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 $ 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 In addition to the option payments, the Company agreed to pay a 1.5% NSR royalty 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. On May 13, 2019, the Company made the fifth and the final option payment of $50,000 to acquire a 100% interest in the Exeter Claim. The funds to make the option payment were advanced to the Company by its CEO and director in exchange for a note payable which accumulates interest at 8% per annum compounded monthly, is unsecured and payable on or after July 31, 2021. |
Common Stock Disclosure
Common Stock Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Common Stock Disclosure | NOTE 6 - COMMON STOCK Shares issued during the year ended January 31, 2020 On January 30, 2020, the Company issued 3,713,420 shares of the Companys common stock under a debt settlement agreement with Ms. Caitlin Jeffs, the CEO, President, and director of the Company. The shares were issued on conversion of $167,104 the Company owed to Ms. Jeffs under convertible notes payable at a deemed price of $0.045 per share. The Company recognized $18,567 loss on conversion, which was recorded through additional paid-in capital (Note 3). Shares issued during the year ended January 31, 2019 On April 20, 2018, the Company issued 2,500,000 units of the Companys common stock at a price of $0.075 per unit for total proceeds of $187,500. Each unit consisted of one common share of the Company and one share purchase warrant (the Warrant) entitling a holder to purchase one additional common share for a period of two years after closing at an exercise price of $0.1875 per share. The Company may accelerate the expiration date of the Warrants if the daily volume weighted average share price of the Companys common shares equals to or is greater than CAD$0.30 as posted on the Canadian Securities Exchange, or USD$0.225 as posted on OTC Link alternative trading system (or such other stock exchange as the Companys common shares are then trading on) for ten consecutive trading days. Warrants At January 31, 2020 and 2019, the Company had 2,500,000 warrants issued and exercisable. Each warrant entitles its holder to purchase one common share for a period of two years expiring on April 20, 2020, at an exercise price of $0.1875 per share, subject to acceleration clause as described above. Subsequent to January 31, 2020, the warrants expired unexercised. |
Income Taxes Disclosure
Income Taxes Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Income Taxes Disclosure | NOTE 7 - INCOME TAXES The provision for income taxes differs from the amount that would have resulted in applying the combined federal statutory tax rate as follows: January 31, 2020 January 31, 2019 Net loss $ (321,592) $ (134,062) Statutory income tax rate 21% 21% Expected in tax recovery at statutory income tax rates (67,000) (28,100) Permanent differences and other -- -- Difference in foreign tax rates, foreign exchange, other (12,000) (12,000) Other (9,000) (18,900) Adjustment to prior year provisions versus statutory tax returns 4,000 18,000 Change in valuation allowance 84,000 41,000 Income tax recovery $ -- $ -- Temporary differences that give rise to the following deferred tax assets and liabilities at are: January 31, 2020 January 31, 2019 Deferred tax assets (liabilities) Federal loss carryforwards $ 741,000 $ 715,000 Foreign loss carryforwards 967,000 925,000 Mineral properties 40,000 24,000 1,748,000 1,664,000 Valuation allowance (1,748,000) (1,664,000) $ -- $ -- The Company has approximately $3,526,481 of United States federal net operating loss carry forwards that may be offset against future taxable income. These losses may be carried forward indefinitely. The Company also has approximately $3,580,870 of Chilean tax losses. The Chilean tax losses can be carried forward indefinitely. |
Subsequent Events Disclosure
Subsequent Events Disclosure | 12 Months Ended |
Jan. 31, 2020 | |
Notes | |
Subsequent Events Disclosure | NOTE 8 - SUBSEQUENT EVENTS Subsequent to January 31, 2020, the Company entered into a loan agreement with Mr. Jeffs, the Companys major shareholder, for $188,922 (CAD$250,000). The loan is unsecured, due on or after August 31, 2021, with interest payable at a rate of 8% per annum. |
Significant Accounting Polici_2
Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Basis of Presentation | Basis of Presentation These consolidated financial statements and related notes are presented in accordance with US GAAP and are expressed in United States dollars. The Company has not produced revenues from its principal business. These financial statements include the accounts of the Company and its subsidiary, Polymet. All intercompany transactions and balances have been eliminated. |
Significant Accounting Polici_3
Significant Accounting Policies: Reclassifications (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Reclassifications | Reclassifications Certain comparative amounts in the accompanying consolidated financial statements have been reclassified to conform to the current years presentation. These reclassifications had no effect on the consolidated results of operations or financial position for any year presented. |
Significant Accounting Polici_4
Significant Accounting Policies: Accounting Estimates (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain of the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to carrying values of unproved mineral properties, asset retirement obligations, fair value of stock-based transactions, and recognition of deferred tax assets or liabilities. |
Significant Accounting Polici_5
Significant Accounting Policies: Fair Value of Financial Instruments, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments The carrying amounts reflected in the balance sheets for cash, other receivables, accounts payable, and amounts due to related parties approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. The fair value hierarchy under US GAAP is based on the following three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1: Level 2: Level 3: The Companys notes payable to related and arms-length parties are based on Level 2 inputs in the ASC 820 fair value hierarchy. The notes payable and notes payable to related parties accumulate interest at a rate of 8% per annum. |
Significant Accounting Polici_6
Significant Accounting Policies: Asset Retirement Obligations, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Asset Retirement Obligations, Policy | Asset Retirement Obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs an obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The estimated fair value of the asset retirement obligation is based on the current cost escalated at an inflation rate and discounted at a credit adjusted risk-free rate. This liability is capitalized as part of the cost of the related asset and amortized over its useful life. The liability accretes until the Company settles the obligation. To date the Company has not incurred any asset retirement obligations. |
Significant Accounting Polici_7
Significant Accounting Policies: Long Lived Assets, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Long Lived Assets, Policy | Long Lived Assets The carrying value of long-lived assets, other than mineral properties, is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. |
Significant Accounting Polici_8
Significant Accounting Policies: Foreign Currency Translation and Transaction, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Foreign Currency Translation and Transaction, Policy | Foreign Currency Translation and Transaction The functional currency for the Company and the Companys foreign subsidiary is the US dollar and the Chilean peso, respectively. The Company translates assets and liabilities to US dollars using year-end exchange rates and translates revenues and expenses using average exchange rates during the period. Exchange gains and losses arising from the translation of foreign entity financial statements are included as a component of other comprehensive income (loss). Transactions denominated in currencies other than the functional currency of the legal entity are re-measured to the functional currency of the legal entity at the year-end exchange rates. Any associated transactional currency re-measurement gains and losses are recognized in current operations. |
Significant Accounting Polici_9
Significant Accounting Policies: Income Taxes, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Income Taxes, Policy | Income Taxes Income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes that date of enactment. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company accounts for uncertainty in income taxes by applying a two-step method. First, it evaluates whether a tax position has met a more likely than not recognition threshold, and second, it measures that tax position to determine the amount of benefit, if any, to be recognized in the financial statements. The application of this method did not have a material effect on the Company's financial statements. |
Significant Accounting Polic_10
Significant Accounting Policies: Loss per Share, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Loss per Share, Policy | Loss per Share The Company presents both basic and diluted loss per share (LPS) on the face of the statements of operations. Basic LPS is computed by dividing net loss available to common shareholders by the weighted average number of shares outstanding during the year. Diluted LPS gives effect to all dilutive potential common shares outstanding during the period including convertible debt, stock options, and warrants, using the treasury stock method. Diluted LPS excludes all dilutive potential shares if their effect is anti-dilutive. |
Significant Accounting Polic_11
Significant Accounting Policies: Mineral Properties, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Mineral Properties, Policy | Mineral Properties The Company capitalizes all property acquisition costs (including option payments). Mineral exploration costs and costs associated with maintenance of the claims are expensed as incurred until commercially mineable deposits are determined to exist within a particular property. Option payments are considered acquisition costs provided that the Company has the intention of exercising the underlying option. Property option agreements are exercisable entirely at the option of the optionee. Therefore, option payments (or recoveries) are recorded when payment is made (or received) and are not accrued. Mineral properties are tested for impairment if facts or circumstances indicate that impairment exists. Examples of such facts and circumstances are as follows: · · · · After technical feasibility and commercial viability of extracting a mineral resource are demonstrable the capitalized balance, net of any impairment recognized, is then reclassified to either tangible or intangible mine development assets according to the nature of the asset. Although the Company has taken steps that it considers adequate to verify title to mineral properties which it has an interest in, these procedures do not guarantee the Companys title. Title to mineral properties in foreign jurisdictions is subject to uncertainty and consequently, such properties may be subject to prior undetected agreements or transfers and title may be affected by such instances. |
Significant Accounting Polic_12
Significant Accounting Policies: Equipment, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Equipment, Policy | Equipment Equipment is recorded at cost and is being amortized over its estimated useful lives using the declining balance method at 30% per year. |
Significant Accounting Polic_13
Significant Accounting Policies: Royalty Income, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Royalty Income, Policy | Royalty Income Royalty payments received from authorized contractors are recognized when the risks and rewards of ownership to delivered concentrate pass to the buyer and collection is reasonably assured. |
Significant Accounting Polic_14
Significant Accounting Policies: Stock Options and Other Share-Based Compensation, Policy (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Stock Options and Other Share-Based Compensation, Policy | Stock Options and Other Share-Based Compensation For equity awards, such as stock options, total compensation cost is based on the grant date fair value and for liability awards, such as stock appreciation rights, total compensation cost is based on the settlement value. The Company recognizes stock-based compensation expense for all awards over the service period required to earn the award, which is the shorter of the vesting period or the time period an employee becomes eligible to retain the award at retirement, adjusted for the expected rate of forfeiture of the equity awards granted. |
Significant Accounting Polic_15
Significant Accounting Policies: Recently Adopted Accounting Guidance (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Policies | |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Recent accounting pronouncements issued by the Financial Accounting Standards Board or other authoritative standards groups with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company. |
Related-Party Transactions Di_2
Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of Related Party Transactions | January 31, 2020 January 31, 2019 Due to a company owned by an officer (a) $ 110 $ 25 Due to a company controlled by directors (b) 7,172 1,824 Total due to related parties $ 7,282 $ 1,849 |
Related-Party Transactions Di_3
Related-Party Transactions Disclosure: Summary of Debt Forgiveness - Due to related parties for services provided (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Summary of Debt Forgiveness - Due to related parties for services provided | Amounts due for services: Debt forgiven by the company owned by an officer $ 721,947 Debt forgiven by the company controlled by directors 361,163 Debt forgiven by the company controlled by a major shareholder 85,374 Debt forgiven by the major shareholder 37,571 Total debt forgiven by related parties $ 1,206,055 |
Related-Party Transactions Di_4
Related-Party Transactions Disclosure: Schedule of transactions with related parties (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of transactions with related parties | January 31, 2020 January 31, 2019 Consulting fees paid or accrued to a company owned by the CFO $ - $ 30,000 Rent fees accrued to a company controlled by a major shareholder $ - $ 5,184 |
Related-Party Transactions Di_5
Related-Party Transactions Disclosure: Amounts due under related party notes payable (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Amounts due under related party notes payable | January 31, 2020 January 31, 2019 Notes payable to the Chief Executive Officer (CEO) (c) $ 502,575 $ 502,448 Note payable to the Chief Financial Officer (CFO) (c) 9,583 8,849 Note payable to a major shareholder (c) 93,701 - Note payable to a company controlled by directors (c) 109,984 102,243 Total notes payable to related parties (d) $ 715,842 $ 613,540 |
Related-Party Transactions Di_6
Related-Party Transactions Disclosure: Summary of Debt Forgiveness - Due to related parties for demand notes payable (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Summary of Debt Forgiveness - Due to related parties for demand notes payable | Amounts due for Principal Accrued Interest Accrued interest on note payable to the CEO $ - $ 127,674 Accrued interest on note payable to the CFO - 5,777 Note payable including accrued interest to a major shareholder 456,369 128,666 Accrued interest on note payable to the company controlled by directors - 55,303 Total notes payable and accrued interest forgiven by related parties $ 456,369 $ 317,420 |
Unproved Mineral Properties D_2
Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments, Quina Claim (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of Option Agreement Commitments, Quina Claim | Date Option Payment Shares Issued Upon execution of the option agreement (Execution date) $ 25,000 500,000 12 months subsequent to the Execution date 25,000 833,333 24 months subsequent to the Execution date 25,000 357,143 36 months subsequent to the Execution date 25,000 357,143 48 months subsequent to the Execution date (paid in cash) 50,000 n/a Total $ 150,000 2,047,619 |
Unproved Mineral Properties D_3
Unproved Mineral Properties Disclosure: Schedule of Option Agreement Commitments, Exeter Claim (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of Option Agreement Commitments, Exeter Claim | Option Payment Upon execution of the option agreement $ 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 |
Income Taxes Disclosure_ Schedu
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | January 31, 2020 January 31, 2019 Net loss $ (321,592) $ (134,062) Statutory income tax rate 21% 21% Expected in tax recovery at statutory income tax rates (67,000) (28,100) Permanent differences and other -- -- Difference in foreign tax rates, foreign exchange, other (12,000) (12,000) Other (9,000) (18,900) Adjustment to prior year provisions versus statutory tax returns 4,000 18,000 Change in valuation allowance 84,000 41,000 Income tax recovery $ -- $ -- |
Income Taxes Disclosure_ Sche_2
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | January 31, 2020 January 31, 2019 Deferred tax assets (liabilities) Federal loss carryforwards $ 741,000 $ 715,000 Foreign loss carryforwards 967,000 925,000 Mineral properties 40,000 24,000 1,748,000 1,664,000 Valuation allowance (1,748,000) (1,664,000) $ -- $ -- |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 | Aug. 21, 2007 |
Details | |||
Business acquisition, interest acquired | 99.00% | ||
Deficit | $ 9,584,892 | $ 9,263,300 |
Related-Party Transactions Di_7
Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Due to related parties | $ 7,282 | $ 1,849 |
Company owned by an officer | ||
Due to related parties | 110 | 25 |
Company controlled by directors | ||
Due to related parties | $ 7,172 | $ 1,824 |
Related-Party Transactions Di_8
Related-Party Transactions Disclosure (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Extinguishment of related party debt | $ 1,979,844 | |
Stock issued for debt, amount converted | $ 167,104 | |
Stock issued for debt, shares | 3,713,420 | |
Debt conversion, per share | $ 0.045 | |
Loss on conversion, recorded as additional paid in capital | $ 18,567 | |
Related parties payables | ||
Interest accrued with related parties | 7,061 | |
Amounts owed for services provided by related parties | ||
Extinguishment of related party debt | 1,206,055 | |
Related parties notes payable | ||
Interest accrued with related parties | 58,787 | 70,138 |
Extinguishment of related party debt | $ 773,789 | |
CEO | ||
Stock issued for debt, amount converted | $ 167,104 | |
Stock issued for debt, shares | 3,713,420 | |
Debt conversion, per share | $ 0.045 | |
Loss on conversion, recorded as additional paid in capital | $ 18,567 |
Related-Party Transactions Di_9
Related-Party Transactions Disclosure: Schedule of transactions with related parties (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Consulting fees paid or accrued, CFO company | ||
Expenses with related parties | $ 0 | $ 30,000 |
Rent fees paid or accrued, major shareholder company | ||
Expenses with related parties | $ 0 | $ 5,184 |
Related-Party Transactions D_10
Related-Party Transactions Disclosure: Amounts due under related party notes payable (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Long-term notes to related parties | $ 715,842 | $ 613,540 |
CEO | ||
Long-term notes to related parties | 502,575 | 502,448 |
CFO | ||
Long-term notes to related parties | 9,583 | 8,849 |
Major shareholder | ||
Long-term notes to related parties | 93,701 | 0 |
Company controlled by directors | ||
Long-term notes to related parties | $ 109,984 | $ 102,243 |
Foregiveness of Debt Disclosu_2
Foregiveness of Debt Disclosure (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Forgiveness of debt | $ 0 | $ (162,723) |
Debt from service providers | ||
Forgiveness of debt | 124,512 | |
Reversal of old debt (statute of limitations) | ||
Forgiveness of debt | $ 38,211 |
Unproved Mineral Properties D_4
Unproved Mineral Properties Disclosure (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Mineral claims, balance | $ 653,117 | $ 730,549 | $ 694,616 |
Property taxes and acquisition fees paid | 50,000 | 103,530 | |
Mineral claims, effect of foreign currency translation | (127,432) | (67,597) | |
Payments for mineral properties | 50,000 | 103,530 | |
Farellon Project | |||
Mineral claims, balance | 610,633 | 679,371 | 652,913 |
Property taxes and acquisition fees paid | 50,000 | 89,434 | |
Mineral claims, effect of foreign currency translation | (118,738) | (62,976) | |
Perth Project | |||
Mineral claims, balance | 42,484 | 51,178 | $ 41,703 |
Property taxes and acquisition fees paid | 0 | 14,096 | |
Mineral claims, effect of foreign currency translation | (8,694) | $ (4,621) | |
Exeter Claim | |||
Payments for mineral properties | $ 50,000 |
Common Stock Disclosure (Detail
Common Stock Disclosure (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Stock issued for debt, shares | 3,713,420 | |
Stock issued for debt, value | $ 167,104 | |
Debt conversion, per share | $ 0.045 | |
Loss on conversion, recorded as additional paid in capital | $ 18,567 | |
Stock issued for cash, value | $ 187,500 | |
Warrants issued and exercisable | 2,500,000 | 2,500,000 |
Exercise price per warrant | $ 0.1875 | |
Offering of Units | ||
Stock issued for cash, shares | 2,500,000 | |
Price per unit | $ 0.075 | |
Stock issued for cash, value | $ 187,500 | |
Description of Stock sold | Each unit consisted of one common share of the Company and one share purchase warrant (the “Warrant”) entitling a holder to purchase one additional common share for a period of two years after closing |
Income Taxes Disclosure_ Sche_3
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Details | ||
Net loss | $ (321,592) | $ (134,062) |
Statutory income tax rate | 0.2100 | 0.2100 |
Expected in tax recovery at statutory income tax rates | (67,000) | (28,100) |
Permanent differences and other | 0 | 0 |
Difference in foreign tax rates | (12,000) | (12,000) |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | (9,000) | (18,900) |
Adjustment to prior year provisions versus statutory tax returns | 4,000 | 18,000 |
Change in valuation allowance | 84,000 | 41,000 |
Income tax recovery | $ 0 | $ 0 |
Income Taxes Disclosure_ Sche_4
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Details | ||
Federal loss carryforwards | $ 741,000 | $ 715,000 |
Foreign loss carryforwards | 967,000 | 925,000 |
Mineral properties deferred tax assets (liabilities) | 40,000 | 24,000 |
Deferred tax assets, gross | 1,748,000 | 1,664,000 |
Valuation allowance | (1,748,000) | (1,664,000) |
Deferred tax assets (liabilities), net | $ 0 | $ 0 |
Income Taxes Disclosure (Detail
Income Taxes Disclosure (Details) | Jan. 31, 2020USD ($) |
Details | |
Federal net operating loss carry forwards | $ 3,526,481 |
Federal net operating loss carry forwards | $ 3,580,870 |
Subsequent Events Disclosure (D
Subsequent Events Disclosure (Details) | 3 Months Ended |
Apr. 30, 2020USD ($) | |
Loan agreement with CEO | |
Loan from related party | $ 188,922 |