Red Metal Resources (RMESF) 10-Q 14 Dec 20 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2020	Dec. 14, 2020
Details
Registrant CIK	0001358654
Fiscal Year End	--01-31
Registrant Name	RED METAL RESOURCES, LTD.
SEC Form	10-Q
Period End date	Oct. 31, 2020
Tax Identification Number (TIN)	20-2138504
Number of common stock shares outstanding		41,218,008
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
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, Postal Zip Code	P7B 1R8
City Area Code	807
Local Phone Number	345-7384
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2020	Jan. 31, 2020
Current assets
Cash	$ 100,583	$ 9,865
Prepaids and other receivables	14,328	5,764
Total current assets	114,911	15,629
Equipment	27,529	798
Unproved mineral properties	676,437	653,117
Total assets	818,877	669,544
Current liabilities
Accounts payable	43,108	239,098
Accrued liabilities	65,735	168,927
Due to related parties	38,738	7,282
Notes payable	15,509	24,451
Total current liabilities	163,090	439,758
Long-term notes to related parties	1,033,957	715,842
Withholding taxes payable	109,076	0
Total liabilities	1,306,123	1,155,600
Stockholders' deficit
Common stock value	41,217	41,217
Additional paid-in capital	9,132,068	9,132,068
Deficit	(9,603,307)	(9,584,892)
Accumulated other comprehensive loss	(57,224)	(74,449)
Total stockholders' deficit	(487,246)	(486,056)
Total liabilities and stockholders' deficit	$ 818,877	$ 669,544

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares	Oct. 31, 2020	Jan. 31, 2020
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
Common Stock, Shares, Outstanding	41,218,008	41,218,008

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Operating expenses:
Amortization	$ 1,580	$ 78	$ 1,692	$ 262
Consulting fees	22,526	0	22,526	0
General and administrative	6,251	22,621	21,010	47,792
Mineral exploration costs	1,151	6,380	4,250	12,487
Professional fees	42,505	10,311	63,469	35,151
Regulatory	2,508	750	13,479	5,228
Rent expense	2,253	0	2,253	0
Salaries, wages and benefits	7,898	16,797	20,678	49,779
Total operating expenses	(86,672)	(56,937)	(149,357)	(150,699)
Other items
Foreign exchange gain (loss)	(909)	17	(840)	110
Forgiveness of debt	114,892	0	189,228	0
Interest on notes payable	(20,586)	(16,923)	(57,446)	(45,072)
Net loss	6,725	(73,843)	(18,415)	(195,661)
Unrealized foreign exchange gain (loss)	(9,607)	(17,819)	17,225	(43,195)
Comprehensive income (loss)	$ (2,882)	$ (91,662)	$ (1,190)	$ (238,856)
Net income (loss) per share - basic and diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted average number of shares outstanding - basic and diluted	41,218,008	37,504,588	41,218,008	37,504,588

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	AOCI Attributable to Parent	Total
Equity Balance at Jan. 31, 2019	$ 37,504	$ 8,968,677	$ (9,263,300)	$ 6,780	$ (250,339)
Equity Balance, Shares at Jan. 31, 2019	37,504,588
Net income (loss) for the period	$ 0	0	(195,661)	0	(195,661)
Foreign exchange translation	$ 0	0	0	(43,195)	(43,195)
Equity Balance, Shares at Oct. 31, 2019	37,504,588
Equity Balance at Oct. 31, 2019	$ 37,504	8,968,677	(9,458,961)	(36,415)	(489,195)
Equity Balance at Jan. 31, 2020	$ 41,217	9,132,068	(9,584,892)	(74,449)	(486,056)
Equity Balance, Shares at Jan. 31, 2020	41,218,008
Net income (loss) for the period	$ 0	0	(18,415)	0	(18,415)
Foreign exchange translation	$ 0	0	0	17,225	17,225
Equity Balance, Shares at Oct. 31, 2020	41,218,008
Equity Balance at Oct. 31, 2020	$ 41,217	$ 9,132,068	$ (9,603,307)	$ (57,224)	$ (487,246)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Cash flows used in operating activities:
Net loss	$ (18,415)	$ (195,661)
Adjustments to reconcile net loss to net cash used in operating activities:
Accrued interest on notes payable	57,446	45,072
Forgiveness of debt	189,228	0
Amortization	1,692	262
Cash paid for interest	3,933	0
Changes in operating assets and liabilities:
Prepaids and other receivables:	(8,902)	(24,818)
Accounts payable:	7,035	33,897
Accrued liabilities:	1,962	12,036
Due to related parties:	35,544	5,448
Net cash used in operating activities	(116,799)	(123,764)
Cash flows used in investing activities:
Acquisition of unproved mineral properties	0	(61,799)
Acquisition of equipment	(27,725)	0
Net cash used in investing activities	(27,725)	(61,799)
Cash flows provided by financing activities:
Proceeds from issuance of notes payable to related parties	264,410	182,212
Repayments of notes payable	(21,067)	0
Net cash provided by financing activities	243,343	182,212
Effects of foreign currency exchange	(8,101)	(1,035)
Increase (decrease) in cash	90,718	(4,386)
Cash, beginning	9,865	8,686
Cash, ending	100,583	4,300
Supplemental disclosures:
Income tax	0	0
Interest	$ 3,933	$ 0

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Oct. 31, 2020
Notes
Organization and Basis of Presentation	NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION Nature of Operations Red Metal Resources Ltd. (the “Company”) is involved in acquiring and exploring mineral properties in Chile through its wholly-owned subsidiary, Minera Polymet SpA (“Polymet”) organized under the laws of the Republic of Chile. The Company has not determined whether its properties contain mineral reserves that are economically recoverable. Unaudited Interim Consolidated Financial Statements The unaudited condensed 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, 2020, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The unaudited condensed 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 a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended October 31, 2020, are not necessarily indicative of the results that may be expected for the year ending January 31, 2021. Going Concern These unaudited condensed consolidated financial statements have been prepared on a going-concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any significant revenues from mineral sales since inception, has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support of its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. The Company’s ability to achieve and maintain profitability and positive cash flows is dependent upon its ability to locate profitable mineral properties, generate revenues from mineral production and control production costs. Based upon its current plans, the Company expects to incur operating losses in future periods. The Company plans to mitigate these operating losses through controlling its operating costs. The Company plans to obtain sufficient working capital through additional debt or equity financing and private loans. At October 31, 2020, the Company had a working capital deficit of $48,179 and accumulated losses of $9,603,307 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. There is no assurance that the Company will be able to generate significant revenues in the future. These unaudited condensed consolidated financial statements do not give any effect to any adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in these unaudited condensed consolidated financial statements. Uncertainty due to Global Outbreak of COVID-19 In March of 2020, the World Health Organization declared an outbreak of COVID-19 Global pandemic. The COVID-19 has impacted vast array of businesses through the restrictions put in place by most governments internationally, including the USA, Canadian and Chilean governments, as well as provincial and municipal governments, regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown to what extent the COVID-19 outbreak may impact the Company and its operations as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place world-wide to fight the virus. While the extent of the impact is unknown, the COVID-19 outbreak may hinder the Company’s ability to raise financing for exploration or operating costs due to uncertain capital markets, supply chain disruptions, increased government regulations and other unanticipated factors, all of which may also negatively impact the Company’s business and financial condition.

Related-Party Transactions Disc

Related-Party Transactions Disclosure	9 Months Ended
	Oct. 31, 2020
Notes
Related-Party Transactions Disclosure	NOTE 2 - RELATED-PARTY TRANSACTIONS The following amounts were due to related parties as at: October 31, 2020 January 31, 2020 Due to a company owned by an officer (a) $ 8,485 $ 110 Due to a company controlled by directors (a) 9,671 7,172 Due to the Chief Executive Officer (“CEO”) (a), (b) 13,703 - Due to the Chief Financial Officer (“CFO”) (a), (b) 4,379 - Due to a major shareholder (a), (b) 2,500 - Total due to related parties $ 38,738 $ 7,282 (a) (b) The NSR will be paid quarterly once commercial exploitation begins and will be paid on gold, silver, copper and cobalt sales. If, within two years, the Company does not commence commercial exploitation of the mineral properties, an annual payment of $10,000 per purchaser will be paid. Pursuant to Chilean law, the NSR agreements will come in force only when registered against the land title in Chile. Due to temporary safety restriction associated with COVID-19 pandemic, the registration of the NSR Agreements has been deferred, therefore the payments made by the CEO, CFO, and the major shareholder, have been recorded as advances on the books of the Company and will be applied towards the agreements, once they are fully legalized. The following amounts were due under the notes payable the Company issued to related parties: October 31, 2020 January 31, 2020 Note payable to CEO (c) $ 546,851 $ 502,575 Note payable to CFO (c) 10,174 9,583 Note payable to a company controlled by directors (c) 116,017 109,984 Note payable to a major shareholder (c) 360,915 93,700 Total notes payable to related parties $ 1,033,957 $ 715,842 (c) During the three-month period ended October 31, 2020, the Company accrued $20,568 (October 31, 2019 - $16,393) in interest expense on the notes payable to related parties. During the nine-month period ended October 31, 2020, the Company accrued $56,457 (October 31, 2019 - $43,469) in interest expense on the notes payable to related parties. Transactions with Related Parties During the three and nine months ended October 31, 2020 and 2019, the Company incurred the following expenses with related parties: Three Months ended October 31, Nine Months ended October 31, 2020 2019 2020 2019 Consulting fees to a company owned by the CFO $ 7,884 $ - $ 7,884 $ - Consulting fees to CFO 3,379 - 3,379 - Consulting fees to CEO and President 11,263 - 11,263 - Rent fees accrued to a company controlled by directors 2,253 - 2,253 - Total transactions with related parties $ 24,779 $ - $ 24,779 $ -

Unproved Mineral Properties Dis

Unproved Mineral Properties Disclosure	9 Months Ended
	Oct. 31, 2020
Notes
Unproved Mineral Properties Disclosure	NOTE 3 - UNPROVED MINERAL PROPERTIES Following is the schedule of the Company’s unproved mineral properties as at October 31, 2020 and January 31, 2020: Mineral Claims at October 31, 2020 Mineral Claims January 31, 2020 Additions/ Payments Effect of foreign currency translation October 31, 2020 Farellon Project Farellon Alto 1-8 $ 343,648 $ - $ 12,270 $ 355,918 Quina 132,455 - 4,730 137,185 Exeter 134,530 - 4,803 139,333 610,633 - 21,803 632,436 Perth Project 42,484 - 1,517 44,001 Total Costs $ 653,117 $ - $ 23,320 $ 676,437 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 $ 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

Common Stock Disclosure

Common Stock Disclosure	9 Months Ended
	Oct. 31, 2020
Notes
Common Stock Disclosure	NOTE 4- COMMON STOCK Warrants During the nine-month period ended October 31, 2020, 2,500,000 warrants issued as part of the April 20, 2018, private placement expired unexercised. The Company has no warrants outstanding as at October 31, 2020 (January 31, 2020 - 2,500,000).

Foregiveness of Debt Disclosure

Foregiveness of Debt Disclosure	9 Months Ended
	Oct. 31, 2020
Notes
Foregiveness of Debt Disclosure	NOTE 5- FORGIVENESS OF DEBT During the nine-month period ended October 31, 2020, the Company recorded $74,336 as forgiveness of debt associated with reversal of an old debt which exceeded the statute of limitations as promulgated under Chilean Laws (October 31, 2019 - $Nil). During the nine-month period ended October 31, 2020, the Company entered into an agreement with its former legal representative in Chile (the “Debt Holder”) whereby the Debt Holder agreed to forgive the amounts the Company owed to him for unpaid salaries, being $127,277 (101,385,974 pesos), and a total of $25,487 (20,302,303 pesos) the Company owed under 8% notes payable, in exchange for $40,000, of which $25,000 the Company paid on August 10, 2020. The remaining $15,000 payable to the Debt Holder accumulates no interest and is payable at the discretion of the Company but no later than on October 29, 2021. The transaction resulted in $114,892 forgiveness of debt.

Withholding Taxes Payable

Withholding Taxes Payable	9 Months Ended
	Oct. 31, 2020
Notes
Withholding Taxes Payable	NOTE 6 - WITHHOLDING TAXES PAYABLE During the nine-month period ended October 31, 2020, the Company reclassified $108,079 in Chilean withholding taxes payable from current- to long-term. As at October 31, 2020, the Company had a total of $109,076 in Chilean withholding taxes payable.

Related-Party Transactions Di_2

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Tables)	9 Months Ended
	Oct. 31, 2020
Tables/Schedules
Schedule of Related Party Transactions	October 31, 2020 January 31, 2020 Due to a company owned by an officer (a) $ 8,485 $ 110 Due to a company controlled by directors (a) 9,671 7,172 Due to the Chief Executive Officer (“CEO”) (a), (b) 13,703 - Due to the Chief Financial Officer (“CFO”) (a), (b) 4,379 - Due to a major shareholder (a), (b) 2,500 - Total due to related parties $ 38,738 $ 7,282

Related-Party Transactions Di_3

Related-Party Transactions Disclosure: Amounts due under related party notes payable (Tables)	9 Months Ended
	Oct. 31, 2020
Tables/Schedules
Amounts due under related party notes payable	October 31, 2020 January 31, 2020 Note payable to CEO (c) $ 546,851 $ 502,575 Note payable to CFO (c) 10,174 9,583 Note payable to a company controlled by directors (c) 116,017 109,984 Note payable to a major shareholder (c) 360,915 93,700 Total notes payable to related parties $ 1,033,957 $ 715,842

Related-Party Transactions Di_4

Related-Party Transactions Disclosure: Schedule of transactions with related parties (Tables)	9 Months Ended
	Oct. 31, 2020
Tables/Schedules
Schedule of transactions with related parties	Three Months ended October 31, Nine Months ended October 31, 2020 2019 2020 2019 Consulting fees to a company owned by the CFO $ 7,884 $ - $ 7,884 $ - Consulting fees to CFO 3,379 - 3,379 - Consulting fees to CEO and President 11,263 - 11,263 - Rent fees accrued to a company controlled by directors 2,253 - 2,253 - Total transactions with related parties $ 24,779 $ - $ 24,779 $ -

Unproved Mineral Properties D_2

Unproved Mineral Properties Disclosure: Schedule of unproved mineral properties (Tables)	9 Months Ended
	Oct. 31, 2020
Tables/Schedules
Schedule of unproved mineral properties	Mineral Claims at October 31, 2020 Mineral Claims January 31, 2020 Additions/ Payments Effect of foreign currency translation October 31, 2020 Farellon Project Farellon Alto 1-8 $ 343,648 $ - $ 12,270 $ 355,918 Quina 132,455 - 4,730 137,185 Exeter 134,530 - 4,803 139,333 610,633 - 21,803 632,436 Perth Project 42,484 - 1,517 44,001 Total Costs $ 653,117 $ - $ 23,320 $ 676,437 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 $ 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

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details) - USD ($)	Oct. 31, 2020	Jan. 31, 2020
Details
Deficit	$ 9,603,307	$ 9,584,892

Related-Party Transactions Di_5

Related-Party Transactions Disclosure: Schedule of Related Party Transactions (Details) - USD ($)	Oct. 31, 2020	Jan. 31, 2020
Due to related parties	$ 38,738	$ 7,282
Company owned by an officer
Due to related parties	8,485	110
Company controlled by directors
Due to related parties	9,671	7,172
CEO
Due to related parties	13,703	0
CFO
Due to related parties	4,379	0
Major shareholder
Due to related parties	$ 2,500	$ 0

Related-Party Transactions Di_6

Related-Party Transactions Disclosure: Amounts due under related party notes payable (Details) - USD ($)	Oct. 31, 2020	Jan. 31, 2020
Long-term notes to related parties	$ 1,033,957	$ 715,842
CEO
Long-term notes to related parties	546,851	502,575
CFO
Long-term notes to related parties	10,174	9,583
Company controlled by directors
Long-term notes to related parties	116,017	109,984
Major shareholder
Long-term notes to related parties	$ 360,915	$ 93,700

Related-Party Transactions Di_7

Related-Party Transactions Disclosure (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Related parties notes payable
Interest accrued with related parties	$ 20,568	$ 16,393	$ 56,457	$ 43,469

Related-Party Transactions Di_8

Related-Party Transactions Disclosure: Schedule of transactions with related parties (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Expenses with related parties	$ 24,779	$ 0	$ 24,779	$ 0
Consulting fees to a company owned by the CFO
Expenses with related parties	7,884	0	7,884	0
Consulting fees to CFO
Expenses with related parties	3,379	0	3,379	0
Consulting fees to CEO and President
Expenses with related parties	11,263	0	11,263	0
Rent fees accrued to a company controlled by directors
Expenses with related parties	$ 2,253	$ 0	$ 2,253	$ 0

Unproved Mineral Properties D_3

Unproved Mineral Properties Disclosure: Schedule of unproved mineral properties (Details) - USD ($)	9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Mineral claims, balance	$ 676,437		$ 653,117	$ 730,549
Property taxes and acquisition fees paid	0	$ 50,000
Mineral claims, effect of foreign currency translation	23,320	(127,432)
Farellon Project
Mineral claims, balance	632,436		610,633	679,371
Property taxes and acquisition fees paid	0	50,000
Mineral claims, effect of foreign currency translation	21,803	(118,738)
Perth Project
Mineral claims, balance	44,001		$ 42,484	$ 51,178
Property taxes and acquisition fees paid	0	0
Mineral claims, effect of foreign currency translation	$ 1,517	$ (8,694)

Common Stock Disclosure (Detail

Common Stock Disclosure (Details) - shares	Oct. 31, 2020	Jan. 31, 2020
Details
Warrants issued and exercisable	0	2,500,000

Foregiveness of Debt Disclosu_2

Foregiveness of Debt Disclosure (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019	Jan. 31, 2020
Forgiveness of debt	$ 114,892	$ 0	$ 189,228	$ 0
Notes payable	15,509		15,509		$ 24,451
Reversal of an old debt in Chile
Forgiveness of debt			74,336
Agreement to forgive debt with former legal rep in Chile
Forgiveness of debt			114,892
Payment of debt extinguishment agreement			25,000
Notes payable	$ 15,000		$ 15,000

Withholding Taxes Payable (Deta

Withholding Taxes Payable (Details) - USD ($)	Oct. 31, 2020	Jan. 31, 2020
Withholding taxes payable, reclassified from current to long-term	$ 109,076	$ 0
Chilean withholding taxes payable reclassified to long-term
Withholding taxes payable, reclassified from current to long-term	108,079
Chilean withholding taxes payable total
Withholding taxes payable, reclassified from current to long-term	$ 109,076