Cover
Cover | 12 Months Ended |
Jan. 31, 2022shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | true |
Amendment Description | This Amendment No. 1 to the Annual Report on Form 20-F of Red Metal Resources Ltd. (the “Company”) amends the Company’s Annual Report on Form 20-F for the year ended January 31, 2022 (the “Original 20-F”), which was filed with the Securities and Exchange Commission on May 31, 2022. The Company is filing this Amendment No. 1 solely to file Exhibit 101, which was not included in the Original 20-F, in accordance with Rule 405 of Regulation S-T. Exhibit 101 contains interactive data files in Inline eXtensible Business Reporting Language (iXBRL). |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Jan. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --01-31 |
Entity File Number | 000-52055 |
Entity Registrant Name | RED METAL RESOURCES LTD. |
Entity Central Index Key | 0001358654 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 1130 West Pender Street |
Entity Address, Address Line Two | Suite 820 |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6E 4A4 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 51,557,959 |
Auditor Firm ID | 1173 |
Auditor Name | DALE MATHESON CARR-HILTON LABONTE LLP |
Auditor Location | Vancouver, Canada |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 102-278 Bay St. |
Entity Address, City or Town | Thunder Bay |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | P7B 1R8 |
Country Region | 1 |
City Area Code | 866 |
Local Phone Number | 907.5403 |
Contact Personnel Name | Caitlin Jeffs |
Phone Fax Number Description | 604-684-0517 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
Current | |||
Cash | $ 474,317 | $ 60,486 | $ 13,054 |
Prepaids and other receivables | 152,947 | 1,273 | 7,628 |
Total current assets | 627,264 | 61,759 | 20,682 |
Equipment | 22,637 | 33,882 | 1,056 |
Exploration and evaluation assets | 821,773 | 900,463 | 864,270 |
Total assets | 1,471,674 | 996,104 | 886,008 |
Current | |||
Accounts payable | 87,938 | 100,658 | 316,398 |
Accrued liabilities | 102,208 | 56,850 | 223,541 |
Due to related parties | 57,254 | 90,117 | 9,636 |
Notes payable | 19,215 | 32,356 | |
Total current liabilities | 247,400 | 266,840 | 581,931 |
Long-term notes payable to related parties | 1,555,503 | 1,397,387 | 947,274 |
Long-term amounts due to related parties | 159,513 | ||
Withholding taxes payable | 151,907 | 149,387 | |
Total liabilities | 2,114,323 | 1,813,614 | 1,529,205 |
Shareholders’ deficit | |||
Share capital | 7,755,830 | 6,409,558 | 6,409,558 |
Share-based payment reserve | 4,034,929 | 3,521,907 | 3,521,907 |
Deficit | (12,144,764) | (10,522,764) | (10,312,110) |
Accumulated other comprehensive loss | (288,644) | (226,211) | (262,552) |
Total shareholders’ deficit | (642,649) | (817,510) | (643,197) |
Total liabilities and shareholders’ deficit | $ 1,471,674 | $ 996,104 | $ 886,008 |
Consolidated Statements of Comp
Consolidated Statements of Comprehencive Loss - CAD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | ||
Operating expenses: | |||
Amortization | $ 8,626 | $ 5,016 | |
Consulting fees | 214,008 | 71,673 | |
General and administrative | 230,582 | 42,124 | |
Mineral exploration costs | 307,669 | 7,272 | |
Professional fees | 313,679 | 161,942 | |
Regulatory | 62,031 | 25,905 | |
Rent | 9,034 | 6,133 | |
Salaries, wages and benefits | 47,419 | 37,505 | |
Share-based compensation | 327,070 | ||
Operating expenses | (1,520,118) | (357,570) | |
Other items | |||
Foreign exchange gain (loss) | 2,404 | (2,811) | |
Forgiveness of debt | 13,858 | 255,493 | |
Interest on notes payable | (118,144) | (105,766) | |
Net loss | (1,622,000) | (210,654) | [1] |
Foreign currency translation | (62,433) | 36,341 | |
Comprehensive loss | $ (1,684,433) | $ (174,313) | |
Net loss per share – basic and diluted | $ (0.04) | $ (0.01) | |
Weighted average number of shares outstanding - basic and diluted: | 45,192,171 | 41,218,008 | |
[1] | Restated for change in presentation currency (Notes 2(c) and 5) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - CAD ($) | Issued capital [member] | Reserve of share-based payments [member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Total | ||
Equity at beginning of period at Jan. 31, 2020 | $ 6,409,558 | $ 3,521,907 | $ (10,312,110) | $ (262,552) | $ (643,197) | ||
Balance, value at Jan. 31, 2020 | [1] | 41,218,008 | |||||
IfrsStatementLineItems [Line Items] | |||||||
Net loss | (210,654) | (210,654) | [2] | ||||
Foreign exchange translation | 36,341 | 36,341 | |||||
Cash received from short sell fees | |||||||
Balance at Jan. 31, 2021 | $ 6,409,558 | 3,521,907 | (10,522,764) | (226,211) | (817,510) | ||
Balance, value at Jan. 31, 2021 | [1] | 41,218,008 | |||||
IfrsStatementLineItems [Line Items] | |||||||
Net loss | (1,622,000) | (1,622,000) | |||||
Foreign exchange translation | (62,433) | (62,433) | |||||
Shares issued for private placement | $ 577,450 | 577,450 | |||||
Shares issued for private placement,shares | 3,849,668 | ||||||
Share issuance costs | $ (80,512) | 58,273 | (22,239) | ||||
Shares issued for subscription receipts | $ 969,131 | 969,131 | |||||
Shares issued for subscription receipts, shares | 6,460,872 | ||||||
Share issuance costs | $ (131,914) | 92,653 | (39,261) | ||||
Shares issued for services | $ 12,117 | 12,117 | |||||
Shares issued for services, shares | 29,411 | ||||||
Share-based compensation | 335,194 | 335,194 | |||||
Forgiveness of debt with related party | 16,925 | 16,925 | |||||
Cash received from short sell fees | 9,977 | 9,977 | |||||
Balance at Jan. 31, 2022 | $ 7,755,830 | $ 4,034,929 | $ (12,144,764) | $ (288,644) | $ (642,649) | ||
Balance, value at Jan. 31, 2022 | 51,557,959 | ||||||
[1] | Restated for change in presentation currency (Notes 2(c) and 5) | ||||||
[2] | Restated for change in presentation currency (Notes 2(c) and 5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Jan. 31, 2022CAD ($) | Jan. 31, 2021CAD ($) | ||
Cash flows used in operating activities | |||
Net loss | $ (1,622,000) | $ (210,654) | [1] |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Accrued interest on related party notes payable | 118,144 | 105,766 | |
Amortization | 8,626 | 5,016 | |
Cash paid for interest | (5,252) | ||
Forgiveness of debt | (13,858) | (255,493) | |
Share-based compensation | 347,311 | ||
Changes in operating assets and liabilities | |||
Prepaids and other receivables | (134,691) | 5,863 | |
Accounts payable | (13,735) | 62,365 | |
Accrued liabilities | 60,738 | 8,451 | |
Due to related parties | 144,550 | 80,639 | |
Net cash used in operating activities | (1,104,915) | (203,299) | |
Cash flows used in investing activities | |||
Acquisition of equipment | (36,562) | ||
Net cash used in investing activities | (36,562) | ||
Cash flows provided by financing activities | |||
Issuance of notes payable to related parties | 39,497 | 352,862 | |
Cash received on subscription to shares | 555,211 | ||
Cash received on subscription to subscription receipts | 929,870 | ||
Repayments of notes payable | (18,981) | (28,128) | |
Cash received from short sell fees | 9,977 | ||
Net cash provided by financing activities | 1,515,574 | 324,734 | |
Effects of foreign currency exchange on cash | 3,172 | (37,441) | |
Increase in cash | 413,831 | 47,432 | |
Cash, beginning | 60,486 | 13,054 | |
Cash, ending | $ 474,317 | $ 60,486 | |
[1] | Restated for change in presentation currency (Notes 2(c) and 5) |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Jan. 31, 2022 | |
Nature And Continuance Of Operations | |
NATURE AND CONTINUANCE OF OPERATIONS | 1. NATURE AND CONTINUANCE 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. The Company’s head office is located at 1130 West Pender Street, Suite 820, Vancouver, British Columbia, V6E 4A4. Its registered office address is 700 – 595 Burrard Street, Vancouver, British Columbia, V7X 1S8. The Company’s mailing address is 278 Bay Street, Suite 102, Thunder Bay, Ontario, P7B 1R8. Polymet’s head office is located in Vallenar, III Region of Atacama, Chile. These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. As at January 31, 2022, the Company has not advanced its mineral properties to commercial production and is not able to finance day to day activities through operations. The Company’s continuation as a going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. As at January 31, 2022, the Company had $ 474,317 379,864 These consolidated financial statements do not give effect to any adjustment which 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 the consolidated financial statements and such adjustments may be material. Uncertainty Associated with Global Outbreak of COVID-19 In March of 2020, the World Health Organization declared an outbreak of COVID-19 a global pandemic. The COVID-19 outbreak 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 spread of 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. |
STATEMENT OF COMPLIANCE BASIS O
STATEMENT OF COMPLIANCE BASIS OF PREPARATION | 12 Months Ended |
Jan. 31, 2022 | |
STATEMENT OF COMPLIANCE BASIS OF PREPARATION | 2. STATEMENT OF COMPLIANCE BASIS OF PREPARATION a) Statement of Compliance These consolidated financial statements were authorized for issue on May 31, 2022, by the directors of the Company. The Company’s consolidated financial statements, including comparatives, have been prepared in accordance with accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) For all periods up to and including the year ended January 31, 2021, the Company prepared its financial statements in accordance with United States generally accepted accounting principles (“GAAP”). The consolidated financial statements for the year ended January 31, 2022, are the first the Company has prepared in accordance with IFRS. Refer to Note 4 for information on the IFRS adoption process. b) Basis of Presentation The consolidated financial statements of the Company as at and for the years ended January 31, 2022 and 2021 comprise of the Company and its wholly-owned subsidiary, Minera Polymet SpA, (together referred to as “Red Metal”, the “Company”). Polymet is consolidated from the date of its incorporation, as Red Metal is the sole shareholder and therefore has the control and power to govern the financial and operating policies of Miner Polymet as to obtain benefits from its activities. The Company will continue to consolidate until the date Red Metal will no longer have control over Polymet. The financial statements of Polymet are prepared for the same reporting period as the parent company, using consistent accounting policies. Balances, transactions, income and expenses between Red Metal and Polymet are eliminated on consolidation. The consolidated financial statements have been prepared on an accrual basis and are based on historical costs, except certain financial instruments, which are recorded at fair value. All amounts are expressed in Canadian dollars, the Company’s reporting currency (Notes 2(c) and 5). The preparation of financial statements in compliance with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported expenses during the year. Actual results could differ from these estimates. The areas involving significant assumptions and estimates are disclosed in Note 6. c) Foreign Currency Translation Functional & presentation currencies The functional currency of the Company is the US dollar. The functional currency of the Company’s subsidiary, Minera Polymet, is the Chilean peso, which is determined to be the currency of the primary economic environment in which Polymet operates. During the year ended January 31, 2022, the Company changed its presentation currency from the US dollar (“USD”) to the Canadian dollar (“CAD”). The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to its peers. For more details, see Note 5 of these audited consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES Cash Cash comprises deposits in banks that are readily convertible into a known amount of cash, or with an initial maturity of less than 90 days. Financial instruments The following is the Company’s accounting policy for financial instruments under IFRS 9: Financial assets i) Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by- instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) ii) Measurement Financial assets at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed to profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets held at FVTPL are recognized in profit and loss in the period in which they arise. Debt investments at FVTOCI These assets are subsequently measured at fair value. Interest income is calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss Equity investments at FVTOCI These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. iii) Impairment of financial assets at amortized cost IFRS 9 uses the expected credit loss (“ECL”) model. The credit loss model groups receivables based on similar credit risk characteristics and days past due in order to estimate bad debts. The ECL model applies to the Company’s receivables. An ‘expected credit loss’ impairment model requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. (iv) Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Financial liabilities Financial liabilities are designated as either: (i) FVTPL; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statements of financial position subsequent to inception and how changes in value are recorded. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or when they expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss. Exploration and evaluation assets Exploration and evaluation assets comprise of the costs of acquiring these assets, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination. Option payments are considered acquisition costs provided that the Company has the intention of exercising the underlying options. Costs incurred before the Company has obtained the legal rights to explore an area are expensed as incurred. Further acquisition costs incurred once the Company has obtained the legal rights to explore an area are capitalized. Costs associated with exploration and evaluation activities as well as property taxes payable to maintain good standing of the exploration and evaluation assets are expensed as period costs. Government tax credits received are recorded as a reduction to the exploration and evaluation expenditures for the reporting period. From time to time, the Company may acquire or dispose of a mineral property interest pursuant to the terms of an option agreement. As such options are exercisable entirely at the discretion of the optionee, the amounts payable or receivable are not recorded at the time of the agreement. Option payments are recorded as exploration expenditure or recoveries when the payments are made or received. Exploration and evaluation assets are tested for impairment if facts or circumstances indicate that impairment exists. Examples of such facts and circumstances are as follows: ● the period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; ● substantive expenditures on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; ● exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and ● sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment. Recoverability of the carrying amount of any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. Although the Company has taken steps that it considers adequate to verify title to exploration and evaluation assets which it has an interest in, these procedures do not guarantee the Company’s title. Restoration and environmental obligations The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of the assets, when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future restoration cost estimates arising from the decommissioning of plant and other site preparation work is capitalized to the related asset along with a corresponding increase in the restoration provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) As at January 31, 2022 and 2021, the Company had not recognized any provisions for restoration and environmental obligations. Property, plant and equipment Property, plant and equipment (“PPE”) are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of PPE consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. As at January 31, 2022, the Company’s equipment consisted of work trucks which are depreciated at 30% using the diminishing balance depreciation method. An item of PPE is derecognized upon disposal, when held for sale or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of comprehensive loss. The Company conducts an annual assessment of the residual balances, useful lives and depreciation methods being used for PPE and any changes arising from the assessment are applied by the Company prospectively. Where an item of plant and equipment comprises major components with different useful lives, the components are accounted for as separate items of plant and equipment. Expenditures incurred to replace a component of an item of property, plant and equipment that is accounted for separately, the major inspection and overhaul expenditures of replacement of such a component are capitalized. Income taxes Income tax is recognized in net loss except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized in equity or other comprehensive income. Current tax expense Deferred tax is recorded providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. Common shares issued for consideration other than cash are valued based on their fair value at the date the shares are issued. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The Company considers the fair value of common shares issued in a private placement to be the more easily measurable component and the common shares are valued at their fair value, as determined by the closing quoted bid price on the issue date. The balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded as reserves. Share purchase warrants issued on a standalone basis are recognized at the fair value using the Black-Scholes Option Pricing model at the date of issue. The value is initially recorded as a part of reserves in equity at the recognized fair value. Upon exercise of the share purchase warrants, the previously recognized fair value of the warrants exercised is reallocated to share capital from reserves. The proceeds generated from the payment of the exercise price are also allocated to share capital. Share-based payment Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the share-based payment reserve. The fair values of the instruments are determined using the Black–Scholes Option Pricing model. The number of the instruments expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the instruments granted shall be based on the number of the instruments that eventually vest. Income/(loss) per share Basic income/(loss) per share is calculated by dividing the income/(loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the income/(loss) attributable to common shareholders equals the reported income/(loss) attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. The Company’s diluted loss per share does not include the effect of stock options or warrants as they are anti-dilutive. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) |
FIRST-TIME ADOPTION OF IFRS
FIRST-TIME ADOPTION OF IFRS | 12 Months Ended |
Jan. 31, 2022 | |
FIRST-TIME ADOPTION OF IFRS | 4. FIRST-TIME ADOPTION OF IFRS These consolidated financial statements, for the year ended January 31, 2022, are the first the Company has prepared in accordance with IFRS. For periods up to and including the year ended January 31, 2021, the Company prepared its financial statements in accordance with United States generally accepted accounting principles (“GAAP”). Accordingly, the Company has prepared financial statements that comply with IFRS applicable as at January 31, 2022, together with the comparative period data for the year ended January 31, 2021, as described in the summary of significant accounting policies. In preparing the financial statements, the Company’s opening statement of financial position was prepared as at February 1, 2020. This note explains the principal adjustments made by the Company in restating its GAAP consolidated financial statements, including the statement of financial position as at February 1, 2020 and the financial statements as of, and for, the year ended January 31, 2021. Exemptions applied IFRS 1 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IFRS. The Company has considered the following exemptions that were relevant to its business operations: ● The Company assessed all contracts existing at February 1, 2020, to determine whether a contract contains a lease based upon the conditions in place as at February 1, 2020. The Company determined that no lease liabilities existed. The Company assessed the effects of adoption of IFRS on the consolidated financial statements, for the years ended January 31, 2022 and 2021, and determined that the adoption did not result in changes. Therefore no reconciliation was required. |
CHANGE IN PRESENTATION CURRENCY
CHANGE IN PRESENTATION CURRENCY | 12 Months Ended |
Jan. 31, 2022 | |
CHANGE IN PRESENTATION CURRENCY | 5. CHANGE IN PRESENTATION CURRENCY Effective February 1, 2021, the Company changed its presentation currency to Canadian dollars from US dollars. The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to its industry peers. The change in presentation currency represents a voluntary change in accounting policy, which is accounted for retrospectively. In order to satisfy the requirements of IAS 21 – The effects of changes in foreign exchange rates, ● assets and liabilities were translated to CAD using exchange rates at January 31, 2021; ● income and expenses were translated using average exchange rates during the year ended January 31, 2021; ● share capital and deficit were translated at the historical rates prevailing at the dates of transactions; and ● differences arising from the retranslation of the opening net assets at February 1, 2020, and the results for the year have been taken to the accumulated other comprehensive loss. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) Consolidated Statements of Financial Position SUMMARY OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND LOSS AND COMPREHENSIVE LOSS January 31, 2021 February 1, 2020 As reported, Restated, CAD$ As reported, Restated, CAD$ Cash $ 47,293 $ 60,486 $ 9,865 $ 13,054 Other current assets 994 1,273 5,764 7,628 Equipment 26,450 33,882 798 1,056 Exploration and evaluation assets 702,941 900,463 653,117 864,270 Total assets $ 777,678 $ 996,104 $ 669,544 $ 886,008 Current liabilities $ 208,744 $ 266,840 $ 439,758 $ 581,931 Non-current liabilities 1,210,035 1,546,774 715,842 947,274 Total liabilities 1,418,779 1,813,614 1,155,600 1,529,205 Share capital 6,281,521 6,409,558 6,281,521 6,409,558 Share-based payment reserve 2,891,764 3,521,907 2,891,764 3,521,907 Deficit (9,744,146 ) (10,522,764 ) (9,584,892 ) (10,312,110 ) Accumulated other comprehensive loss (70,240 ) (226,211 ) (74,449 ) (262,552 ) Total shareholders’ deficit (641,101 ) (817,510 ) (486,056 ) (643,197 ) Total liabilities and shareholders’ deficit $ 777,678 $ 996,104 $ 669,544 $ 886,008 Consolidated Statement of Loss and Comprehensive Loss Year ended January 31, 2021 As reported, Restated, CAD$ Operating expenses $ (267,297 ) $ (357,570 ) Foreign exchange loss (2,148 ) (2,811 ) Forgiveness of debt 189,228 255,493 Interest on notes payable (79,037 ) (105,766 ) Net loss (159,254 ) (210,654 ) Foreign currency translation 4,209 36,341 Comprehensive loss $ (155,045 ) $ (174,313 ) Earnings per share - basic and diluted $ (0.00 ) $ (0.01 ) |
SIGNIFICANT ACCOUNTING JUDGEMEN
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Jan. 31, 2022 | |
Significant Accounting Judgements Estimates And Assumptions | |
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | 6. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these consolidated financial statements in conformity with IFRS requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. These financial statements include estimates which, by their nature, are uncertain. These assumptions and associated estimates are based on historical experience and other factors that are considered to be relevant. The current market conditions introduce additional uncertainties, risks and complexities in management’s determination of the estimates and assumptions used to prepare the Company’s financial results. As the COVID-19 pandemic and volatility in financial markets is an evolving situation, management cannot reasonably estimate the length or severity of the impact on the Company. As such, actual results may differ from estimates and the effect of such differences may be material. The impacts of such estimates are pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and the revision affects both current and future periods. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) The following are critical judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the financial statements: ● classification/allocation of expenses as exploration and evaluation expenditures; ● classification and measurement of the Company’s financial assets and liabilities; ● determination that the Company is able to continue as a going concern; and ● determination whether there have been any events or changes in circumstances that indicate the impairment of the Company’s exploration and evaluations assets. Key sources of estimation uncertainty include the following: ● the carrying value and recoverability of exploration and evaluation assets; ● recoverability and measurement of deferred tax assets; ● provisions for restoration and environmental obligations and contingent liabilities; and ● measurement of share-based transactions. |
FINANCIAL INSTRUMENTS AND RISKS
FINANCIAL INSTRUMENTS AND RISKS | 12 Months Ended |
Jan. 31, 2022 | |
Financial Instruments And Risks | |
FINANCIAL INSTRUMENTS AND RISKS | 7. FINANCIAL INSTRUMENTS AND RISKS Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels at the fair value hierarchy are: Level 1 — quoted prices in active markets for identical assets and liabilities. Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 — unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The Company has classified its cash as measured at fair value in the statement of financial position, using level 1 inputs. Categories of financial instruments SCHEDULE OF FINANCIAL INSTRUMENTS As at: January 31, 2022 January 31, 2021 February 1, 2020 Financial assets: FVTPL Cash $ 474,317 $ 60,486 $ 13,054 Financial liabilities: Amortized cost Accounts payable $ 87,938 $ 100,658 $ 316,398 Accrued liabilities $ 102,208 $ 56,850 $ 223,541 Due to related parties $ 57,254 $ 90,117 $ 9,636 Notes payable $ - $ 19,215 $ 32,356 Assets and liabilities measured at fair value on a recurring basis: SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES As at January 31, 2022 Level 1 Level 2 Level 3 Total Cash $ 474,317 $ - $ - $ 474,317 $ 474,317 $ - $ - $ 474,317 Accounts payable, accrued liabilities, and due to related parties approximate their fair value due to the short-term nature of these instruments. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) Risk management The Company has exposure to the following risks from its use of financial instruments: credit risk, market risk and liquidity risk. Management, the Board of Directors, and the Audit Committee monitor risk management activities and review the adequacy of such activities. Credit risk: Credit risk is the risk of potential loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is limited to the carrying amount on the statement of financial position and arises from the Company’s cash, which is held with a high-credit quality financial institutions in Canada and in Chile. As such, the Company’s credit risk exposure is minimal. Market risk: Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and equity prices. i. Interest rate risk: Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has minimal interest rate risk as it has no interest accumulating financial assets that may become susceptible to interest rate fluctuations. ii. Currency risk: Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company has offices in Canada and Chile, and holds cash in Canadian, United States, and Chilean Peso currencies. A significant change in the currency exchange rates between the Canadian dollar relative to US dollar and Chilean Peso could have an effect on the Company’s results of operations, financial position, and/or cash flows. At January 31, 2022, the Company had no hedging agreements in place with respect to foreign exchange rates. As the majority of the transactions of the Company are denominated in CAD and Chilean Peso currencies, movements in the foreign exchange rates are not expected to have a material impact on the consolidated statements of comprehensive loss. iii. Equity price risk: Equity price risk is the risk that the fair value of equity/securities decreases as a result of changes in the levels of equity indices and the value of individual stocks. The Company is not exposed to equity price risk as it does not have any investments in marketable securities. Liquidity risk: Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, considering its anticipated cash flows. Historically, the Company’s sources of funding have been through equity financings and loans from the Company’s management and its major shareholder. Subsequent to January 31, 2022, the Company received additional $ 432,702 496,300 The following table details the remaining contractual maturities of the Company’s financial liabilities as of January 31, 2022: SUMMARY OF CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES Within 1 year 1-5 years 5+ years Accounts payable and accrued liabilities $ 190,146 $ - $ - Amounts due to related parties 57,254 159,513 - Loans payable (1) - 1,684,462 - Withholding taxes payable - - 151,907 Current liabilities $ 247,400 $ 1,843,975 $ 151,907 (1) Payments denominated in foreign currencies have been translated using the January 31, 2022, exchange rate. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) |
EXPLORATION AND EVALUATION ASSE
EXPLORATION AND EVALUATION ASSETS | 12 Months Ended |
Jan. 31, 2022 | |
Exploration And Evaluation Assets | |
EXPLORATION AND EVALUATION ASSETS | 8. EXPLORATION AND EVALUATION ASSETS As of January 31, 2022, and 2021, the Company’s interest in exploration and evaluation assets consisted of three active copper-gold projects on two properties, namely the Farellón and Perth Projects both located on the Carrizal Property, and the Mateo Project located on the Mateo Property. The Company capitalizes acquisition costs incurred on the Company’s exploration and evaluation properties; the costs associated with exploration and drilling programs as well as property tax payments are expensed as period costs in the period they are incurred. Following tables present, as of January 31, 2022 and 2021, acquisition costs associated with each property: Exploration and evaluation assets at January 31, 2022 SCHEDULE OF EXPLORATION AND EVALUATION ASSETS January 31, 2021 (restated)* Effect of foreign currency translation January 31, 2022 Farellón Project Farellón $ 473,792 $ (41,403 ) $ 432,389 Quina 182,618 (15,958 ) 166,660 Exeter 185,479 (16,209 ) 169,270 Sub-total, Farellón Project 841,889 (73,570 ) 768,319 Perth Project 58,573 (5,119 ) 53,454 Total costs $ 900,463 $ (78,690 ) $ 821,773 Exploration and evaluation assets at January 31, 2021 January 31, 2020 (restated)* Effect of foreign currency translation January 31, 2021 (restated)* Farellón Project Farellón $ 454,749 $ 19,043 $ 473,792 Quina 175,278 7,341 182,618 Exeter 178,024 7,455 185,479 Sub-total, Farellón Project 808,051 33,839 841,889 Perth Project 56,219 2,354 58,573 Total costs $ 864,270 $ 36,193 $ 900,463 During the year ended January 31, 2022, the Company incurred the following costs associated with the exploration activities on its mineral properties: Exploration costs for the year ended January 31, 2022 SCHEDULE OF EXPLORATION COSTS Farellón Project Perth Project Mateo Project Total Costs Property taxes paid $ 24,321 $ 52,151 $ 10,716 $ 87,188 Geology 27,509 - - 27,509 Drilling 150,222 - - 150,222 Equipment used 5,754 - - 5,754 Camp costs (including meals and travel) 30,938 - - 30,938 Total exploration costs $ 238,744 $ 52,151 $ 10,716 $ 301,611 RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) Exploration costs for the year ended January 31, 2021 Farellón Project Perth Project Mateo Project Total Costs Property taxes paid $ 684 $ - $ - $ 684 Geology - - - - Drilling - - - - Equipment used - - - - Camp costs (including meals and travel) 866 - - 866 Total exploration costs $ 1,550 $ - $ - $ 1,550 In addition to the costs listed in the tables above, during the year ended January 31, 2022, the Company incurred $ 6,058 5,722 |
EQUIPMENT
EQUIPMENT | 12 Months Ended |
Jan. 31, 2022 | |
EQUIPMENT | 9. EQUIPMENT Changes in equipment cost, depreciation and net book value of the equipment at January 31, 2022 and 2021, are as follows: DISCLOSURE OF DETAILED INFORMATION ABOUT EQUIPMENT Cost Equipment Balance at February 1, 2020 $ 15,174 Additions 36,562 Effect of foreign currency translation 1,979 Balance at January 31, 2021 53,715 Additions - Effect of foreign currency translation (4,694 ) Balance at January 31, 2022 $ 49,021 Accumulated depreciation Balance at February 1, 2020 $ 14,118 Additions 5,016 Effect of foreign currency translation 699 Balance at January 31, 2021 19,833 Additions 8,626 Effect of foreign currency translation (2,075 ) Balance at January 31, 2022 $ 26,384 Net carrying amounts Balance, January 31, 2021 $ 33,882 Balance, January 31, 2022 $ 22,637 |
PREPAIDS AND OTHER RECEIVABLES
PREPAIDS AND OTHER RECEIVABLES | 12 Months Ended |
Jan. 31, 2022 | |
PREPAIDS AND OTHER RECEIVABLES | 10. PREPAIDS AND OTHER RECEIVABLES Prepaids and other receivables consisted of the following as at January 31, 2022 and 2021: DISCLOSURE OF PREPAID AND OTHER RECEIVABLES January 31, 2022 January 31, 2021 Chilean corporate tax prepayment $ 652 $ 714 GST/HST receivable 11,785 - Prepaid deposits for drilling program 21,065 - Prepaid expenses for general and administrative fees 119,445 559 Total prepaids and other receivables $ 152,947 $ 1,273 RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) |
WITHHOLDING TAXES PAYABLE
WITHHOLDING TAXES PAYABLE | 12 Months Ended |
Jan. 31, 2022 | |
Withholding Taxes Payable | |
WITHHOLDING TAXES PAYABLE | 11. WITHHOLDING TAXES PAYABLE On July 31, 2020, the Company reclassified $ 146,237 151,907 149,387 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Jan. 31, 2022 | |
SHARE CAPITAL | 12. SHARE CAPITAL On February 10, 2021, the Company changed its corporate jurisdiction from the State of Nevada to the Province of British Columbia. The Articles of Incorporation and Bylaws of the Company, under the Nevada Revised Statutes, were replaced with the Articles of the Company, under the Business Corporations Act 6,424,684 On May 14, 2021, the Company issued 29,411 5,000 0.17 0.206 29,411 0.34 0.41 12,117 On May 17, 2021, the Company closed a non-brokered private placement by issuing 3,849,668 0.15 577,450 0.20 24 months The Warrants are subject to an acceleration clause in the event that the common shares are listed on a recognized stock exchange and trade at a price of $0.30 or greater for 10 consecutive trading days, in which event the Company may notify warrant holders that the Warrants must be exercised within a period of 30 days. In case the Warrant holders do not exercise them within the accelerated 30-day period, the warrants will expire automatically. Nil In connection with the Unit Offering, the Company paid cash commissions aggregating $ 22,239 149,310 58,273 SUMMARY OF FAIR VALUE ASSUMPTIONS Expected Life of the broker warrants 2 years Risk-Free Interest Rate 0.16 % Expected Dividend Yield Nil Expected Stock Price Volatility 255 % Fair Value at the date of transaction $ 0.45 On June 15, 2021, the Company closed a non-brokered private placement by issuing 6,460,872 0.15 969,131 Each Subscription Receipt automatically entitled the holder thereof, without payment of any additional consideration and without further action on the part of the holder, to acquire one Subscription Receipt Unit (an “SR Unit”). Each SR Unit consisted of one common share and one common share purchase warrant of the Company (each, an “SR Warrant”). Each SR Warrant entitles the holder to purchase an additional common share of the Company at a price of $0.30 per common share, if exercised during the first year following the release from escrow, and at a price of $0.60, if exercised during the second year following the release from escrow. Nil RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) Until the escrow release conditions (including the listing of the Company’s common shares on a recognized stock exchange in Canada) were met in full, the Subscription Receipts, and the proceeds of the SR Offering were held in trust by an escrow agent appointed by the Company. On November 18, 2021, the Company received a receipt for a final non-offering prospectus with the B.C. Securities Commission after which, having satisfied the escrow release conditions, the escrowed funds were released to the Company effective November 22, 2021, and an aggregate of 6,460,872 6,460,872 6,460,872 In connection with the closing of the SR Offering, the Company paid certain registered investment dealers a total of $ 39,261 228,389 92,653 The Broker SR Warrants are subject to the same terms and conditions as the SR Warrants purchased by other subscribers in the SR Offering. The Company used Black-Scholes option pricing model to determine the value of the Broker SR Warrants. The following assumptions were used: SUMMARY OF FAIR VALUE ASSUMPTIONS Expected Life of the Broker SR Warrants 2 years Risk-Free Interest Rate 1.04 % Expected Dividend Yield Nil Expected Stock Price Volatility 265 % Fair Value at the date of transaction $ 0.43 Warrants The changes in the number of warrants outstanding during the years ended January 31, 2022 and 2021, are as follows: SUMMARY OF CHANGES NUMBER OF WARRANTS OUTSTANDING Year ended January 31, 2022 Year ended January 31, 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Warrants outstanding, beginning - $ n/a 2,500,000 $ 0.1875 Warrants issued 10,688,239 $ 0.36 - $ n/a Warrants expired - $ n/a (2,500,000 ) $ 0.1875 Warrants outstanding, ending 10,688,239 $ 0.36 - $ n/a Details of warrants outstanding as at January 31, 2022, are as follows: SUMMARY OF DETAILS OF WARRANTS OUTSTANDING Number of warrants exercisable Grant date Exercise price 3,849,668 May 17, 2021 $0.20 expiring on May 17, 2023 149,310 (1) May 17, 2021 $0.20 expiring on May 17, 2023 6,460,872 November 23, 2021 $0.30 if exercised prior to November 23, 2022; 228,389 (1) November 23, 2021 $0.30 if exercised prior to November 23, 2022 10,688,239 (1) Broker warrants issued on closing of the Unit Offering and SR Offering. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) At January 31, 2022, the weighted average life of the warrants was 1.62 Options On July 13, 2021, the Company adopted an incentive stock option plan (the “Option Plan”) which provides that the Board of Directors of the Company may, from time to time, at their discretion and in accordance with the CSE requirements, grant stock options to directors, officers and technical consultants for up to 10% On November 24, 2021, the Company’s board of directors granted 1,750,000 0.25 five years expiring on November 24, 2026 1,700,000 330,425 SUMMARY OF FAIR VALUE ASSUMPTIONS November 24, 2021 Expected life 5 years Annualized volatility 186 % Risk-free interest rate 1.56 % Dividend yield Nil Fair Value at the date of grant $ 0.20 The option to acquire up to 50,000 12 months 12,500 4,770 SUMMARY OF FAIR VALUE ASSUMPTIONS November 24, 2021 Expected life 5 years Annualized volatility 195 % Risk-free interest rate 1.64 % Dividend yield Nil Fair Value at vesting $ 0.25 At January 31, 2022, the Company had 1,750,000 1,700,000 0.25 4.82 Recovery of Short-Swing Profits During the year ended January 31, 2022, the Company received $ 9,977 |
FORGIVENESS OF DEBT
FORGIVENESS OF DEBT | 12 Months Ended |
Jan. 31, 2022 | |
Forgiveness Of Debt | |
FORGIVENESS OF DEBT | 13. FORGIVENESS OF DEBT During the year ended January 31, 2022, the Company’s legal counsel agreed to forgive $ 13,667 191 RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) During the year ended January 31, 2021, 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 $ 169,940 101,385,974 34,030 20,302,303 8 53,408 40,000 28,128 25,000 18,981 15,000 102,465 255,493 2,466 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Jan. 31, 2022 | |
Related-party Transactions | |
RELATED-PARTY TRANSACTIONS | 14. RELATED-PARTY TRANSACTIONS Related parties include the directors, officers, key management personnel, close family members and entities controlled by these individuals. Key management personnel are those having authority and responsibility for planning, directing and controlling the activities of the Company as a whole The following amounts were due to related parties as at: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 January 31, 2021 Due to a company owned by an officer and director (a) $ 21 $ 22,341 Due to a company controlled by officers and directors (a) 39,565 16,270 Due to a company controlled by officers and directors (a) 5,650 - Due to the Chief Executive Officer (“CEO”) (a), (b) 5,476 35,200 Due to the Chief Financial Officer (“CFO”) (a), (b) 1,272 10,278 Due to a major shareholder (a), (b) 3,180 3,195 Due to a company controlled by a director (a) 2,090 2,833 Total due to related parties $ 57,254 $ 90,117 (a) Amounts are unsecured, due on demand and bear no interest. (b) On July 29, 2020, Polymet entered into mining royalty agreements (the “NSR Agreements”) with the Company’s CEO, CFO, and the major shareholder (the “Purchasers”) to sell net smelter returns (the “NSR”) on its mineral concessions. NSR range from 0.3 1.25 1,908 1,500 1,272 1,000 3,180 2,500 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 Pursuant to Chilean law, the NSR agreements will come in force only when registered against the land title in Chile. Due to temporary safety restrictions 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 NSR Agreements, once they are fully legalized. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) On October 31, 2021, the Company and its related parties agreed to defer certain debt the Company owed to them until January 31, 2023. As at January 31, 2022, the following amounts were included in long-term debt due to related parties: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 Due to a company owned by an officer and director (c) $ 74,763 Due to a company controlled by officers and directors (c) 84,750 Total due to related parties $ 159,513 (c) Amounts are unsecured, bear no interest, and are payable on or after January 31, 2023. The following amounts were due under the notes payable the Company issued to related parties: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 January 31, 2021 Note payable to CEO (d) $ 804,309 $ 742,816 Note payable to CFO (d) 14,298 13,265 Note payable to a company controlled by officers and directors (d) 566,166 483,658 Note payable to a major shareholder (d) 170,730 157,648 Total notes payable to related parties $ 1,555,503 $ 1,397,387 (d) The notes payable to related parties accumulate interest at a rate of 8 During the year ended January 31, 2022, the Company accrued $ 118,144 104,422 Transactions with Related Parties During the years ended January 31, 2022 and 2021, the Company incurred the following expenses with related parties: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES EXPENSES 2022 2021 Year ended January 31, 2022 2021 Consulting fees to a company owned by an officer and director $ 59,141 $ 21,466 Consulting fees to a company controlled by officers and directors 60,070 30,666 Consulting fees paid or accrued to a company controlled by VP of Finance 24,036 - Consulting fees to an officer and director - 9,200 Mineral exploration expenses paid to a company controlled by officers and directors 42,760 - Legal fees paid to a company controlled by a director 37,036 2,794 Rent fees accrued to a company controlled by officers and directors 9,034 6,133 Stock-based compensation for options to acquire up to 1,390,000 270,170 - Total transactions with related parties $ 502,247 $ 70,259 On January 31, 2022, a company controlled by directors agreed to forgive a total of $ 16,925 At January 31, 2022, the Company had prepaid consulting fees to VP of Finance of $ 7,120 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Jan. 31, 2022 | |
SEGMENTED INFORMATION | 15. SEGMENTED INFORMATION The Company has one operating segment, the exploration of mineral properties, and two geographical segments with all current exploration activities being conducted in Chile. All of the Company’s equipment and exploration and evaluation assets are located in Chile as follows: DESCRIPTION OF REPORTABLE SEGMENT TO WHICH INDIVIDUAL ASSET 2022 2021 Year ended January 31, 2022 2021 (restated)* Equipment $ 22,637 $ 33,882 Exploration and evaluation assets 821,773 900,463 Total property plant and equipment $ 844,410 $ 934,345 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2022 | |
INCOME TAXES | 16. INCOME TAXES A reconciliation of income taxes at statutory rate is as follows: DISCLOSURE OF TAX RECONCILIATION Year ended January 31, 2022 2021 (restated) * Net loss before tax $ (1,622,000 ) $ (210,654 ) Statutory income tax rate 27 % 21 % Expected income tax recovery at statutory income tax rates (438,000 ) (44,000 ) Non-deductible expenditures 90,924 - Difference in foreign tax rates, foreign exchange - 5,112 Other (136,333 ) (57,571 ) Adjustment to prior year provisions versus statutory tax returns 39,409 72,907 Change in valuation allowance 444,000 23,552 Income tax recovery $ - $ - * Restated for change in presentation currency (Notes 2(c) and 5) RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) The Company’s deferred tax assets and liabilities are comprised of the following: DISCLOSURE OF DEFERRED TAXES Year ended January 31, 2022 2021 (restated)* Deferred tax assets (liabilities): Federal loss carryforwards $ 1,267,000 $ 1,010,000 Foreign loss carryforwards 1,359,000 1,206,000 Mineral properties 38,000 38,000 Deferred tax asset gross 2,664,000 2,254,000 Valuation allowance (2,664,000 ) (2,254,000 ) Net deferred tax asset $ - $ - * Restated for change in presentation currency (Notes 2(c) and 5) The Company has approximately $ 5,704,000 5,035,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 31, 2022 | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Subsequent to January 31, 2022, the Company announced its intention to complete a non-brokered private placement (the “2022 Offering”) of up to 6,666,667 0.15 1,000,000 0.30 0.60 496,300 30,314 202,090 Subsequent to January 31, 2022, the Company issued a number of notes payable to its CEO, for a total of $ 432,702 8 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Cash | Cash Cash comprises deposits in banks that are readily convertible into a known amount of cash, or with an initial maturity of less than 90 days. |
Financial instruments | Financial instruments The following is the Company’s accounting policy for financial instruments under IFRS 9: Financial assets i) Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by- instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) ii) Measurement Financial assets at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed to profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets held at FVTPL are recognized in profit and loss in the period in which they arise. Debt investments at FVTOCI These assets are subsequently measured at fair value. Interest income is calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss Equity investments at FVTOCI These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. iii) Impairment of financial assets at amortized cost IFRS 9 uses the expected credit loss (“ECL”) model. The credit loss model groups receivables based on similar credit risk characteristics and days past due in order to estimate bad debts. The ECL model applies to the Company’s receivables. An ‘expected credit loss’ impairment model requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. (iv) Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Financial liabilities Financial liabilities are designated as either: (i) FVTPL; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statements of financial position subsequent to inception and how changes in value are recorded. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or when they expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss. |
Exploration and evaluation assets | Exploration and evaluation assets Exploration and evaluation assets comprise of the costs of acquiring these assets, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination. Option payments are considered acquisition costs provided that the Company has the intention of exercising the underlying options. Costs incurred before the Company has obtained the legal rights to explore an area are expensed as incurred. Further acquisition costs incurred once the Company has obtained the legal rights to explore an area are capitalized. Costs associated with exploration and evaluation activities as well as property taxes payable to maintain good standing of the exploration and evaluation assets are expensed as period costs. Government tax credits received are recorded as a reduction to the exploration and evaluation expenditures for the reporting period. From time to time, the Company may acquire or dispose of a mineral property interest pursuant to the terms of an option agreement. As such options are exercisable entirely at the discretion of the optionee, the amounts payable or receivable are not recorded at the time of the agreement. Option payments are recorded as exploration expenditure or recoveries when the payments are made or received. Exploration and evaluation assets are tested for impairment if facts or circumstances indicate that impairment exists. Examples of such facts and circumstances are as follows: ● the period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; ● substantive expenditures on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; ● exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and ● sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment. Recoverability of the carrying amount of any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. Although the Company has taken steps that it considers adequate to verify title to exploration and evaluation assets which it has an interest in, these procedures do not guarantee the Company’s title. |
Restoration and environmental obligations | Restoration and environmental obligations The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of the assets, when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future restoration cost estimates arising from the decommissioning of plant and other site preparation work is capitalized to the related asset along with a corresponding increase in the restoration provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) As at January 31, 2022 and 2021, the Company had not recognized any provisions for restoration and environmental obligations. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment (“PPE”) are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of PPE consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. As at January 31, 2022, the Company’s equipment consisted of work trucks which are depreciated at 30% using the diminishing balance depreciation method. An item of PPE is derecognized upon disposal, when held for sale or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of comprehensive loss. The Company conducts an annual assessment of the residual balances, useful lives and depreciation methods being used for PPE and any changes arising from the assessment are applied by the Company prospectively. Where an item of plant and equipment comprises major components with different useful lives, the components are accounted for as separate items of plant and equipment. Expenditures incurred to replace a component of an item of property, plant and equipment that is accounted for separately, the major inspection and overhaul expenditures of replacement of such a component are capitalized. |
Income taxes | Income taxes Income tax is recognized in net loss except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized in equity or other comprehensive income. Current tax expense Deferred tax is recorded providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. |
Share capital | Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. Common shares issued for consideration other than cash are valued based on their fair value at the date the shares are issued. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The Company considers the fair value of common shares issued in a private placement to be the more easily measurable component and the common shares are valued at their fair value, as determined by the closing quoted bid price on the issue date. The balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded as reserves. Share purchase warrants issued on a standalone basis are recognized at the fair value using the Black-Scholes Option Pricing model at the date of issue. The value is initially recorded as a part of reserves in equity at the recognized fair value. Upon exercise of the share purchase warrants, the previously recognized fair value of the warrants exercised is reallocated to share capital from reserves. The proceeds generated from the payment of the exercise price are also allocated to share capital. |
Share-based payment | Share-based payment Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the share-based payment reserve. The fair values of the instruments are determined using the Black–Scholes Option Pricing model. The number of the instruments expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the instruments granted shall be based on the number of the instruments that eventually vest. |
Income/(loss) per share | Income/(loss) per share Basic income/(loss) per share is calculated by dividing the income/(loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the income/(loss) attributable to common shareholders equals the reported income/(loss) attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. The Company’s diluted loss per share does not include the effect of stock options or warrants as they are anti-dilutive. RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) |
CHANGE IN PRESENTATION CURREN_2
CHANGE IN PRESENTATION CURRENCY (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
SUMMARY OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND LOSS AND COMPREHENSIVE LOSS | Consolidated Statements of Financial Position SUMMARY OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND LOSS AND COMPREHENSIVE LOSS January 31, 2021 February 1, 2020 As reported, Restated, CAD$ As reported, Restated, CAD$ Cash $ 47,293 $ 60,486 $ 9,865 $ 13,054 Other current assets 994 1,273 5,764 7,628 Equipment 26,450 33,882 798 1,056 Exploration and evaluation assets 702,941 900,463 653,117 864,270 Total assets $ 777,678 $ 996,104 $ 669,544 $ 886,008 Current liabilities $ 208,744 $ 266,840 $ 439,758 $ 581,931 Non-current liabilities 1,210,035 1,546,774 715,842 947,274 Total liabilities 1,418,779 1,813,614 1,155,600 1,529,205 Share capital 6,281,521 6,409,558 6,281,521 6,409,558 Share-based payment reserve 2,891,764 3,521,907 2,891,764 3,521,907 Deficit (9,744,146 ) (10,522,764 ) (9,584,892 ) (10,312,110 ) Accumulated other comprehensive loss (70,240 ) (226,211 ) (74,449 ) (262,552 ) Total shareholders’ deficit (641,101 ) (817,510 ) (486,056 ) (643,197 ) Total liabilities and shareholders’ deficit $ 777,678 $ 996,104 $ 669,544 $ 886,008 Consolidated Statement of Loss and Comprehensive Loss Year ended January 31, 2021 As reported, Restated, CAD$ Operating expenses $ (267,297 ) $ (357,570 ) Foreign exchange loss (2,148 ) (2,811 ) Forgiveness of debt 189,228 255,493 Interest on notes payable (79,037 ) (105,766 ) Net loss (159,254 ) (210,654 ) Foreign currency translation 4,209 36,341 Comprehensive loss $ (155,045 ) $ (174,313 ) Earnings per share - basic and diluted $ (0.00 ) $ (0.01 ) |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISKS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Financial Instruments And Risks | |
SCHEDULE OF FINANCIAL INSTRUMENTS | Categories of financial instruments SCHEDULE OF FINANCIAL INSTRUMENTS As at: January 31, 2022 January 31, 2021 February 1, 2020 Financial assets: FVTPL Cash $ 474,317 $ 60,486 $ 13,054 Financial liabilities: Amortized cost Accounts payable $ 87,938 $ 100,658 $ 316,398 Accrued liabilities $ 102,208 $ 56,850 $ 223,541 Due to related parties $ 57,254 $ 90,117 $ 9,636 Notes payable $ - $ 19,215 $ 32,356 |
SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES | Assets and liabilities measured at fair value on a recurring basis: SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES As at January 31, 2022 Level 1 Level 2 Level 3 Total Cash $ 474,317 $ - $ - $ 474,317 $ 474,317 $ - $ - $ 474,317 |
SUMMARY OF CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES | The following table details the remaining contractual maturities of the Company’s financial liabilities as of January 31, 2022: SUMMARY OF CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES Within 1 year 1-5 years 5+ years Accounts payable and accrued liabilities $ 190,146 $ - $ - Amounts due to related parties 57,254 159,513 - Loans payable (1) - 1,684,462 - Withholding taxes payable - - 151,907 Current liabilities $ 247,400 $ 1,843,975 $ 151,907 (1) Payments denominated in foreign currencies have been translated using the January 31, 2022, exchange rate. |
EXPLORATION AND EVALUATION AS_2
EXPLORATION AND EVALUATION ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Exploration And Evaluation Assets | |
SCHEDULE OF EXPLORATION AND EVALUATION ASSETS | Exploration and evaluation assets at January 31, 2022 SCHEDULE OF EXPLORATION AND EVALUATION ASSETS January 31, 2021 (restated)* Effect of foreign currency translation January 31, 2022 Farellón Project Farellón $ 473,792 $ (41,403 ) $ 432,389 Quina 182,618 (15,958 ) 166,660 Exeter 185,479 (16,209 ) 169,270 Sub-total, Farellón Project 841,889 (73,570 ) 768,319 Perth Project 58,573 (5,119 ) 53,454 Total costs $ 900,463 $ (78,690 ) $ 821,773 Exploration and evaluation assets at January 31, 2021 January 31, 2020 (restated)* Effect of foreign currency translation January 31, 2021 (restated)* Farellón Project Farellón $ 454,749 $ 19,043 $ 473,792 Quina 175,278 7,341 182,618 Exeter 178,024 7,455 185,479 Sub-total, Farellón Project 808,051 33,839 841,889 Perth Project 56,219 2,354 58,573 Total costs $ 864,270 $ 36,193 $ 900,463 |
SCHEDULE OF EXPLORATION COSTS | Exploration costs for the year ended January 31, 2022 SCHEDULE OF EXPLORATION COSTS Farellón Project Perth Project Mateo Project Total Costs Property taxes paid $ 24,321 $ 52,151 $ 10,716 $ 87,188 Geology 27,509 - - 27,509 Drilling 150,222 - - 150,222 Equipment used 5,754 - - 5,754 Camp costs (including meals and travel) 30,938 - - 30,938 Total exploration costs $ 238,744 $ 52,151 $ 10,716 $ 301,611 RED METAL RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Canadian Dollars) Exploration costs for the year ended January 31, 2021 Farellón Project Perth Project Mateo Project Total Costs Property taxes paid $ 684 $ - $ - $ 684 Geology - - - - Drilling - - - - Equipment used - - - - Camp costs (including meals and travel) 866 - - 866 Total exploration costs $ 1,550 $ - $ - $ 1,550 |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
DISCLOSURE OF DETAILED INFORMATION ABOUT EQUIPMENT | Changes in equipment cost, depreciation and net book value of the equipment at January 31, 2022 and 2021, are as follows: DISCLOSURE OF DETAILED INFORMATION ABOUT EQUIPMENT Cost Equipment Balance at February 1, 2020 $ 15,174 Additions 36,562 Effect of foreign currency translation 1,979 Balance at January 31, 2021 53,715 Additions - Effect of foreign currency translation (4,694 ) Balance at January 31, 2022 $ 49,021 Accumulated depreciation Balance at February 1, 2020 $ 14,118 Additions 5,016 Effect of foreign currency translation 699 Balance at January 31, 2021 19,833 Additions 8,626 Effect of foreign currency translation (2,075 ) Balance at January 31, 2022 $ 26,384 Net carrying amounts Balance, January 31, 2021 $ 33,882 Balance, January 31, 2022 $ 22,637 |
PREPAIDS AND OTHER RECEIVABLES
PREPAIDS AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
DISCLOSURE OF PREPAID AND OTHER RECEIVABLES | Prepaids and other receivables consisted of the following as at January 31, 2022 and 2021: DISCLOSURE OF PREPAID AND OTHER RECEIVABLES January 31, 2022 January 31, 2021 Chilean corporate tax prepayment $ 652 $ 714 GST/HST receivable 11,785 - Prepaid deposits for drilling program 21,065 - Prepaid expenses for general and administrative fees 119,445 559 Total prepaids and other receivables $ 152,947 $ 1,273 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |
SUMMARY OF CHANGES NUMBER OF WARRANTS OUTSTANDING | The changes in the number of warrants outstanding during the years ended January 31, 2022 and 2021, are as follows: SUMMARY OF CHANGES NUMBER OF WARRANTS OUTSTANDING Year ended January 31, 2022 Year ended January 31, 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Warrants outstanding, beginning - $ n/a 2,500,000 $ 0.1875 Warrants issued 10,688,239 $ 0.36 - $ n/a Warrants expired - $ n/a (2,500,000 ) $ 0.1875 Warrants outstanding, ending 10,688,239 $ 0.36 - $ n/a |
SUMMARY OF DETAILS OF WARRANTS OUTSTANDING | Details of warrants outstanding as at January 31, 2022, are as follows: SUMMARY OF DETAILS OF WARRANTS OUTSTANDING Number of warrants exercisable Grant date Exercise price 3,849,668 May 17, 2021 $0.20 expiring on May 17, 2023 149,310 (1) May 17, 2021 $0.20 expiring on May 17, 2023 6,460,872 November 23, 2021 $0.30 if exercised prior to November 23, 2022; 228,389 (1) November 23, 2021 $0.30 if exercised prior to November 23, 2022 10,688,239 (1) Broker warrants issued on closing of the Unit Offering and SR Offering. |
Incentive Stock Options [Member] | |
IfrsStatementLineItems [Line Items] | |
SUMMARY OF FAIR VALUE ASSUMPTIONS | SUMMARY OF FAIR VALUE ASSUMPTIONS November 24, 2021 Expected life 5 years Annualized volatility 186 % Risk-free interest rate 1.56 % Dividend yield Nil Fair Value at the date of grant $ 0.20 |
Investor Relation Services [Member] | |
IfrsStatementLineItems [Line Items] | |
SUMMARY OF FAIR VALUE ASSUMPTIONS | SUMMARY OF FAIR VALUE ASSUMPTIONS November 24, 2021 Expected life 5 years Annualized volatility 195 % Risk-free interest rate 1.64 % Dividend yield Nil Fair Value at vesting $ 0.25 |
Broker Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
SUMMARY OF FAIR VALUE ASSUMPTIONS | SUMMARY OF FAIR VALUE ASSUMPTIONS Expected Life of the broker warrants 2 years Risk-Free Interest Rate 0.16 % Expected Dividend Yield Nil Expected Stock Price Volatility 255 % Fair Value at the date of transaction $ 0.45 |
Broker Subscription Receipt Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
SUMMARY OF FAIR VALUE ASSUMPTIONS | SUMMARY OF FAIR VALUE ASSUMPTIONS Expected Life of the Broker SR Warrants 2 years Risk-Free Interest Rate 1.04 % Expected Dividend Yield Nil Expected Stock Price Volatility 265 % Fair Value at the date of transaction $ 0.43 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES | The following amounts were due to related parties as at: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 January 31, 2021 Due to a company owned by an officer and director (a) $ 21 $ 22,341 Due to a company controlled by officers and directors (a) 39,565 16,270 Due to a company controlled by officers and directors (a) 5,650 - Due to the Chief Executive Officer (“CEO”) (a), (b) 5,476 35,200 Due to the Chief Financial Officer (“CFO”) (a), (b) 1,272 10,278 Due to a major shareholder (a), (b) 3,180 3,195 Due to a company controlled by a director (a) 2,090 2,833 Total due to related parties $ 57,254 $ 90,117 (a) Amounts are unsecured, due on demand and bear no interest. (b) On July 29, 2020, Polymet entered into mining royalty agreements (the “NSR Agreements”) with the Company’s CEO, CFO, and the major shareholder (the “Purchasers”) to sell net smelter returns (the “NSR”) on its mineral concessions. NSR range from 0.3 1.25 1,908 1,500 1,272 1,000 3,180 2,500 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 Pursuant to Chilean law, the NSR agreements will come in force only when registered against the land title in Chile. Due to temporary safety restrictions 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 NSR Agreements, once they are fully legalized. |
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES EXPENSES | During the years ended January 31, 2022 and 2021, the Company incurred the following expenses with related parties: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES EXPENSES 2022 2021 Year ended January 31, 2022 2021 Consulting fees to a company owned by an officer and director $ 59,141 $ 21,466 Consulting fees to a company controlled by officers and directors 60,070 30,666 Consulting fees paid or accrued to a company controlled by VP of Finance 24,036 - Consulting fees to an officer and director - 9,200 Mineral exploration expenses paid to a company controlled by officers and directors 42,760 - Legal fees paid to a company controlled by a director 37,036 2,794 Rent fees accrued to a company controlled by officers and directors 9,034 6,133 Stock-based compensation for options to acquire up to 1,390,000 270,170 - Total transactions with related parties $ 502,247 $ 70,259 |
Long Term Debt [Member] | |
IfrsStatementLineItems [Line Items] | |
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES | DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 Due to a company owned by an officer and director (c) $ 74,763 Due to a company controlled by officers and directors (c) 84,750 Total due to related parties $ 159,513 (c) Amounts are unsecured, bear no interest, and are payable on or after January 31, 2023. |
Notes Payable [Member] | |
IfrsStatementLineItems [Line Items] | |
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES | The following amounts were due under the notes payable the Company issued to related parties: DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES January 31, 2022 January 31, 2021 Note payable to CEO (d) $ 804,309 $ 742,816 Note payable to CFO (d) 14,298 13,265 Note payable to a company controlled by officers and directors (d) 566,166 483,658 Note payable to a major shareholder (d) 170,730 157,648 Total notes payable to related parties $ 1,555,503 $ 1,397,387 (d) The notes payable to related parties accumulate interest at a rate of 8 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
DESCRIPTION OF REPORTABLE SEGMENT TO WHICH INDIVIDUAL ASSET | The Company has one operating segment, the exploration of mineral properties, and two geographical segments with all current exploration activities being conducted in Chile. All of the Company’s equipment and exploration and evaluation assets are located in Chile as follows: DESCRIPTION OF REPORTABLE SEGMENT TO WHICH INDIVIDUAL ASSET 2022 2021 Year ended January 31, 2022 2021 (restated)* Equipment $ 22,637 $ 33,882 Exploration and evaluation assets 821,773 900,463 Total property plant and equipment $ 844,410 $ 934,345 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
DISCLOSURE OF TAX RECONCILIATION | A reconciliation of income taxes at statutory rate is as follows: DISCLOSURE OF TAX RECONCILIATION Year ended January 31, 2022 2021 (restated) * Net loss before tax $ (1,622,000 ) $ (210,654 ) Statutory income tax rate 27 % 21 % Expected income tax recovery at statutory income tax rates (438,000 ) (44,000 ) Non-deductible expenditures 90,924 - Difference in foreign tax rates, foreign exchange - 5,112 Other (136,333 ) (57,571 ) Adjustment to prior year provisions versus statutory tax returns 39,409 72,907 Change in valuation allowance 444,000 23,552 Income tax recovery $ - $ - * Restated for change in presentation currency (Notes 2(c) and 5) |
DISCLOSURE OF DEFERRED TAXES | The Company’s deferred tax assets and liabilities are comprised of the following: DISCLOSURE OF DEFERRED TAXES Year ended January 31, 2022 2021 (restated)* Deferred tax assets (liabilities): Federal loss carryforwards $ 1,267,000 $ 1,010,000 Foreign loss carryforwards 1,359,000 1,206,000 Mineral properties 38,000 38,000 Deferred tax asset gross 2,664,000 2,254,000 Valuation allowance (2,664,000 ) (2,254,000 ) Net deferred tax asset $ - $ - * Restated for change in presentation currency (Notes 2(c) and 5) |
NATURE AND CONTINUANCE OF OPE_2
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
Nature And Continuance Of Operations | |||
Cash | $ 474,317 | $ 60,486 | $ 13,054 |
Working capital | $ 379,864 |
SUMMARY OF CONSOLIDATED STATEME
SUMMARY OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND LOSS AND COMPREHENSIVE LOSS (Details) | 12 Months Ended | |||||||
Jan. 31, 2022CAD ($)$ / shares | Jan. 31, 2021USD ($)$ / shares | Jan. 31, 2021CAD ($)$ / shares | Jan. 31, 2021CAD ($) | Feb. 01, 2020USD ($) | Feb. 01, 2020CAD ($) | Jan. 31, 2020CAD ($) | ||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | $ 474,317 | $ 60,486 | $ 13,054 | $ 13,054 | ||||
Other current assets | 1,273 | 7,628 | ||||||
Equipment | 22,637 | 33,882 | 1,056 | |||||
Exploration and evaluation assets | 900,463 | 864,270 | ||||||
Total assets | 1,471,674 | 996,104 | 886,008 | |||||
Current liabilities | 247,400 | 266,840 | 581,931 | |||||
Non-current liabilities | 1,546,774 | 947,274 | ||||||
Total liabilities | 2,114,323 | 1,813,614 | 1,529,205 | |||||
Share capital | 7,755,830 | 6,409,558 | 6,409,558 | |||||
Share-based payment reserve | 4,034,929 | 3,521,907 | 3,521,907 | |||||
Deficit | (12,144,764) | (10,522,764) | (10,312,110) | |||||
Accumulated other comprehensive loss | (288,644) | (226,211) | (262,552) | |||||
Total shareholders' deficit | (642,649) | (817,510) | (643,197) | $ (643,197) | ||||
Total liabilities and shareholders' deficit | 1,471,674 | $ 996,104 | $ 886,008 | |||||
Operating expenses | (1,520,118) | $ (357,570) | ||||||
Foreign exchange loss | (2,811) | |||||||
Forgiveness of debt | 13,858 | 255,493 | ||||||
Interest on notes payable | (118,144) | (105,766) | ||||||
Net loss | (1,622,000) | (210,654) | [1] | |||||
Foreign currency translation | (62,433) | 36,341 | ||||||
Comprehensive loss | $ (1,684,433) | $ (174,313) | ||||||
Earnings per share - basic and diluted | $ / shares | $ (0.04) | $ (0.01) | ||||||
Previously stated [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | $ 47,293 | $ 9,865 | ||||||
Other current assets | 994 | 5,764 | ||||||
Equipment | 26,450 | 798 | ||||||
Exploration and evaluation assets | 702,941 | 653,117 | ||||||
Total assets | 777,678 | 669,544 | ||||||
Current liabilities | 208,744 | 439,758 | ||||||
Non-current liabilities | 1,210,035 | 715,842 | ||||||
Total liabilities | 1,418,779 | 1,155,600 | ||||||
Share capital | 6,281,521 | 6,281,521 | ||||||
Share-based payment reserve | 2,891,764 | 2,891,764 | ||||||
Deficit | (9,744,146) | (9,584,892) | ||||||
Accumulated other comprehensive loss | (70,240) | (74,449) | ||||||
Total shareholders' deficit | (641,101) | (486,056) | ||||||
Total liabilities and shareholders' deficit | 777,678 | $ 669,544 | ||||||
Operating expenses | (267,297) | |||||||
Foreign exchange loss | (2,148) | |||||||
Forgiveness of debt | 189,228 | |||||||
Interest on notes payable | (79,037) | |||||||
Net loss | (159,254) | |||||||
Foreign currency translation | 4,209 | |||||||
Comprehensive loss | $ (155,045) | |||||||
Earnings per share - basic and diluted | $ / shares | $ 0 | |||||||
[1] | Restated for change in presentation currency (Notes 2(c) and 5) |
SCHEDULE OF FINANCIAL INSTRUMEN
SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
Financial Instruments And Risks | |||
Cash | $ 474,317 | $ 60,486 | $ 13,054 |
Accounts payable | 87,938 | 100,658 | 316,398 |
Accrued liabilities | 102,208 | 56,850 | 223,541 |
Due to related parties | 57,254 | 90,117 | 9,636 |
Notes payable | $ 19,215 | $ 32,356 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
IfrsStatementLineItems [Line Items] | |||
Cash | $ 474,317 | $ 60,486 | $ 13,054 |
Cash [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | 474,317 | ||
Level 1 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | 474,317 | ||
Level 1 of fair value hierarchy [member] | Cash [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | 474,317 | ||
Level 2 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | |||
Level 2 of fair value hierarchy [member] | Cash [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | |||
Level 3 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash | |||
Level 3 of fair value hierarchy [member] | Cash [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash |
SUMMARY OF CONTRACTUAL MATURITI
SUMMARY OF CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
IfrsStatementLineItems [Line Items] | |||
Amounts due to related parties | $ 57,254 | $ 90,117 | $ 9,636 |
Withholding taxes payable | 151,907 | 149,387 | |
Current liabilities | 247,400 | $ 266,840 | $ 581,931 |
Not later than one year [member] | Accounts Payables and Accrued Liabilities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts payable and accrued liabilities | 190,146 | ||
Amounts due to related parties | 57,254 | ||
Loans payable in default | |||
Withholding taxes payable | |||
Current liabilities | $ 247,400 |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISKS (Details Narrative) - CAD ($) | May 17, 2021 | Feb. 10, 2021 | May 31, 2022 |
IfrsStatementLineItems [Line Items] | |||
Proceeds from offerings | $ 577,450 | $ 6,424,684 | |
Liquidity risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Proceeds from loan | $ 432,702 | ||
Proceeds from offerings | $ 496,300 |
SCHEDULE OF EXPLORATION AND EVA
SCHEDULE OF EXPLORATION AND EVALUATION ASSETS (Details) - CAD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | $ 900,463 | $ 864,270 |
Effect of foreign currency translation | (78,690) | 36,193 |
Total costs, ending balance | 821,773 | 900,463 |
Farellon [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | 473,792 | 454,749 |
Effect of foreign currency translation | (41,403) | 19,043 |
Total costs, ending balance | 432,389 | 473,792 |
Quina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | 182,618 | 175,278 |
Effect of foreign currency translation | (15,958) | 7,341 |
Total costs, ending balance | 166,660 | 182,618 |
Exeter [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | 185,479 | 178,024 |
Effect of foreign currency translation | (16,209) | 7,455 |
Total costs, ending balance | 169,270 | 185,479 |
Farellon Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | 841,889 | 808,051 |
Effect of foreign currency translation | (73,570) | 33,839 |
Total costs, ending balance | 768,319 | 841,889 |
Perth Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total costs, beginning balance | 58,573 | 56,219 |
Effect of foreign currency translation | (5,119) | 2,354 |
Total costs, ending balance | $ 53,454 | $ 58,573 |
SCHEDULE OF EXPLORATION COSTS (
SCHEDULE OF EXPLORATION COSTS (Details) - CAD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Property taxes paid | $ 87,188 | $ 684 |
Geology | 27,509 | |
Drilling | 150,222 | |
Equipment used | 5,754 | |
Camp costs (including meals and travel) | 30,938 | 866 |
Total exploration costs | 301,611 | 1,550 |
Farellon Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property taxes paid | 24,321 | 684 |
Geology | 27,509 | |
Drilling | 150,222 | |
Equipment used | 5,754 | |
Camp costs (including meals and travel) | 30,938 | 866 |
Total exploration costs | 238,744 | 1,550 |
Perth Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property taxes paid | 52,151 | |
Geology | ||
Drilling | ||
Equipment used | ||
Camp costs (including meals and travel) | ||
Total exploration costs | 52,151 | |
Mateo Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property taxes paid | 10,716 | |
Geology | ||
Drilling | ||
Equipment used | ||
Camp costs (including meals and travel) | ||
Total exploration costs | $ 10,716 |
EXPLORATION AND EVALUATION AS_3
EXPLORATION AND EVALUATION ASSETS (Details Narrative) - CAD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Exploration And Evaluation Assets | ||
Regulatory fees | $ 6,058 | $ 5,722 |
DISCLOSURE OF DETAILED INFORMAT
DISCLOSURE OF DETAILED INFORMATION ABOUT EQUIPMENT (Details) - CAD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Net carrying amounts | $ 33,882 | |
Net carrying amounts | 22,637 | $ 33,882 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance at February 1, 2020 | 53,715 | 15,174 |
Additions | 36,562 | |
Effect of foreign currency translation | (4,694) | 1,979 |
Property, plant and equipment at end of period | 49,021 | 53,715 |
Accumulated depreciation and amortisation [member] | ||
IfrsStatementLineItems [Line Items] | ||
Additions | 8,626 | 5,016 |
Effect of foreign currency translation | (2,075) | 699 |
Balance at January 31, 2021 | 19,833 | 14,118 |
Balance at January 31, 2022 | $ 26,384 | $ 19,833 |
DISCLOSURE OF PREPAID AND OTHER
DISCLOSURE OF PREPAID AND OTHER RECEIVABLES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
Chilean corporate tax prepayment | $ 652 | $ 714 | |
GST/HST receivable | 11,785 | ||
Prepaid deposits for drilling program | 21,065 | ||
Prepaid expenses for general and administrative fees | 119,445 | 559 | |
Total prepaids and other receivables | $ 152,947 | $ 1,273 | $ 7,628 |
WITHHOLDING TAXES PAYABLE (Deta
WITHHOLDING TAXES PAYABLE (Details Narrative) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Jul. 31, 2020 | Feb. 01, 2020 |
Withholding Taxes Payable | ||||
Withholding tax payable long-term liabilitie | $ 146,237 | |||
Taxes payable | $ 151,907 | $ 149,387 |
SUMMARY OF FAIR VALUE ASSUMPTIO
SUMMARY OF FAIR VALUE ASSUMPTIONS (Details) - $ / shares | Nov. 24, 2021 | Jan. 31, 2022 |
Incentive Stock Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Expected life | 5 years | |
Risk-free interest rate | 1.56% | |
Dividend yield | ||
Annualized volatility | 186.00% | |
Fair Value at vesting | $ 0.20 | |
Investor Relation Services [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Expected life | 5 years | |
Risk-free interest rate | 1.64% | |
Dividend yield | ||
Annualized volatility | 195.00% | |
Fair Value at vesting | $ 0.25 | |
Broker Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Expected life | 2 years | |
Risk-free interest rate | 0.16% | |
Dividend yield | ||
Annualized volatility | 255.00% | |
Fair Value at vesting | $ 0.45 | |
Broker Subscription Receipt Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Expected life | 2 years | |
Risk-free interest rate | 1.04% | |
Dividend yield | ||
Annualized volatility | 265.00% | |
Fair Value at vesting | $ 0.43 |
SUMMARY OF CHANGES NUMBER OF WA
SUMMARY OF CHANGES NUMBER OF WARRANTS OUTSTANDING (Details) - Warrants [Member] | 12 Months Ended | |
Jan. 31, 2022$ / shares | Jan. 31, 2021$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Warrants outstanding, beginning | 2,500,000 | |
Weighted average exercise price Warrants outstanding, beginning | $ 0.1875 | |
Warrants issued | 10,688,239 | |
Weighted average exercise price Warrants outstanding, issued | $ 0.36 | |
Warrants expired | (2,500,000) | |
Weighted average exercise price Warrants outstanding, expired | $ 0.1875 | |
Warrants outstanding, ending | 10,688,239 | |
Weighted average exercise price Warrants outstanding, ending | $ 0.36 |
SUMMARY OF DETAILS OF WARRANTS
SUMMARY OF DETAILS OF WARRANTS OUTSTANDING (Details) | 12 Months Ended | |
Jan. 31, 2022shares | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants exercisable | 10,688,239 | |
May 17, 2021 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants exercisable | 3,849,668 | |
Warrants exercise price description | $0.20 expiring on May 17, 2023 | |
May 17, 2021 [Member] | Broker Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants exercisable | 149,310 | [1] |
Warrants exercise price description | $0.20 expiring on May 17, 2023 | [1] |
November 23. 2021 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants exercisable | 6,460,872 | |
Warrants exercise price description | $0.30 if exercised prior to November 23, 2022; $0.60 if exercised after November 23, 2022 but prior to November 23, 2023 | |
November 23. 2021 [Member] | Broker Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants exercisable | 228,389 | [1] |
Warrants exercise price description | $0.30 if exercised prior to November 23, 2022 $0.60 is exercised after November 23, 2022 but prior to November 23, 2023 | [1] |
[1] | Broker warrants issued on closing of the Unit Offering and SR Offering. |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) | Feb. 24, 2022shares | Nov. 24, 2021CAD ($)shares$ / shares | Nov. 18, 2021CAD ($)shares | Jul. 13, 2021 | Jun. 15, 2021CAD ($)$ / sharesshares | May 17, 2021CAD ($)$ / sharesshares | May 14, 2021CAD ($) | Apr. 14, 2021USD ($) | Feb. 10, 2021CAD ($) | Jan. 31, 2022CAD ($)shares$ / shares | Jan. 31, 2021CAD ($) | May 14, 2021$ / sharesshares | May 14, 2021$ / sharesshares |
IfrsStatementLineItems [Line Items] | |||||||||||||
Proceeds from issuing shares | $ | $ 577,450 | $ 6,424,684 | |||||||||||
Fees payable | $ | $ 22,239 | ||||||||||||
Shares issued deemed price | (per share) | $ 0.17 | $ 0.206 | |||||||||||
Par value per share | (per share) | $ 0.15 | $ 0.34 | $ 0.41 | ||||||||||
Investor relation fees | $ | $ 12,117 | 313,679 | $ 161,942 | ||||||||||
Number of stock issued for private placement | 3,849,668 | ||||||||||||
Warrant exercise price | $ / shares | $ 0.20 | ||||||||||||
Warrants exercise term | 24 months | ||||||||||||
Warrants description | The Warrants are subject to an acceleration clause in the event that the common shares are listed on a recognized stock exchange and trade at a price of $0.30 or greater for 10 consecutive trading days, in which event the Company may notify warrant holders that the Warrants must be exercised within a period of 30 days. In case the Warrant holders do not exercise them within the accelerated 30-day period, the warrants will expire automatically. | ||||||||||||
Warrant reserve | $ | $ 58,273 | ||||||||||||
Number of warrants issued | 149,310 | ||||||||||||
Weighted average life | 4 years 9 months 25 days | ||||||||||||
Percentage of grant stock options | 10.00% | ||||||||||||
Share based compensation | $ | $ 4,770 | ||||||||||||
Number of share options outstanding | 1,750,000 | ||||||||||||
Number of stock options exercisable | 1,700,000 | ||||||||||||
Number of stock options exercisable, per share | $ / shares | $ 0.25 | ||||||||||||
Short term profit | $ | $ 9,977 | ||||||||||||
After Reporting Events [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 12,500 | ||||||||||||
Subscription Receipt Offering [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Proceeds from issuing shares | $ | $ 969,131 | ||||||||||||
Number of shares issued | 6,460,872 | 6,460,872 | |||||||||||
Par value per share | $ / shares | $ 0.15 | ||||||||||||
Warrants description | Each SR Unit consisted of one common share and one common share purchase warrant of the Company (each, an “SR Warrant”). Each SR Warrant entitles the holder to purchase an additional common share of the Company at a price of $0.30 per common share, if exercised during the first year following the release from escrow, and at a price of $0.60, if exercised during the second year following the release from escrow. | ||||||||||||
Warrant reserve | $ | |||||||||||||
Issued capital [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of shares issued | 6,460,872 | ||||||||||||
Subscription Receipt Warrants [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of shares issued | 6,460,872 | ||||||||||||
Warrants [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Weighted average life | 1 year 7 months 13 days | ||||||||||||
Independent Contractors Services Agreement [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Fees payable | $ | $ 5,000 | ||||||||||||
Consultant [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of shares issued | 29,411 | 29,411 | |||||||||||
Investment Dealers [Member] | Broker Subscription Receipt Warrants [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of warrants issued | 228,389 | ||||||||||||
Payments for share offering | $ | $ 39,261 | ||||||||||||
Number of warrants issued value | $ | $ 92,653 | ||||||||||||
Board of Directors [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 1,750,000 | ||||||||||||
Stock options exercisable | $ / shares | $ 0.25 | ||||||||||||
Stock options exercisable term | five years expiring on November 24, 2026 | ||||||||||||
Number of share options vested | 1,700,000 | ||||||||||||
Share based compensation | $ | $ 330,425 | ||||||||||||
Consultants [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 50,000 | ||||||||||||
Stock options exercisable term | 12 months |
FORGIVENESS OF DEBT (Details Na
FORGIVENESS OF DEBT (Details Narrative) | Sep. 09, 2021USD ($) | Sep. 09, 2021CAD ($) | Aug. 10, 2020USD ($) | Aug. 10, 2020CAD ($) | Jan. 31, 2022CAD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2021CAD ($) | Jan. 31, 2021PHP (₱) | Jan. 31, 2021PHP (₱) |
IfrsStatementLineItems [Line Items] | |||||||||
Forgiveness of debt gross | $ 13,667 | ||||||||
Additional Forgiveness of debt | 191 | $ 102,465 | |||||||
Forgiveness of debt | 13,858 | 255,493 | |||||||
Notes payable | $ 34,030 | ₱ 20,302,303 | |||||||
Percentage of Notes payable | 8.00% | 8.00% | |||||||
Issue of convertible instruments | $ 40,000 | $ 53,408 | |||||||
Repayments of notes payable | $ 15,000 | $ 18,981 | $ 25,000 | $ 28,128 | $ 18,981 | 28,128 | |||
Foreign exchange gain (loss) | 2,466 | ||||||||
Debt Holder [Member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Forgiveness of debt | $ 169,940 | ₱ 101,385,974 |
DISCLOSURE OF TRANSACTIONS BETW
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | $ 57,254 | $ 90,117 | $ 9,636 |
Total due to related parties | 159,513 | ||
Total notes payable to related parties | 1,555,503 | 1,397,387 | $ 947,274 |
Officer and Director [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 21 | 22,341 | |
Total due to related parties | 74,763 | ||
Total notes payable to related parties | 566,166 | 483,658 | |
Officer and Director One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 39,565 | 16,270 | |
Total due to related parties | 84,750 | ||
Officer and Director Two [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 5,650 | ||
CEO [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 5,476 | 35,200 | |
Total notes payable to related parties | 804,309 | 742,816 | |
CFO [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 1,272 | 10,278 | |
Total notes payable to related parties | 14,298 | 13,265 | |
Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | 3,180 | 3,195 | |
Total notes payable to related parties | 170,730 | 157,648 | |
Director [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total due to related parties | $ 2,090 | $ 2,833 |
DISCLOSURE OF TRANSACTIONS BE_2
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES (Details) (Parenthetical) | Jul. 29, 2020USD ($) | Jul. 29, 2020CAD ($) | Jan. 31, 2022CAD ($) | Jan. 31, 2021CAD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Amounts payable, related party transactions | $ 10,000 | |||
Interest rate | 8.00% | |||
CEO [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Purchases of goods, related party transactions | $ 1,500 | 1,908 | ||
CFO [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Purchases of goods, related party transactions | 1,000 | 1,272 | ||
Shareholder [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Purchases of goods, related party transactions | $ 2,500 | $ 3,180 | ||
Related parties [member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Amounts payable, related party transactions | $ 502,247 | $ 70,259 | ||
Interest rate | 8.00% | |||
Bottom of range [member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Percentage of net smelter returns | 0.30% | 0.30% | ||
Top of range [member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Percentage of net smelter returns | 1.25% | 1.25% |
DISCLOSURE OF TRANSACTIONS BE_3
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES EXPENSES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Jul. 29, 2020 |
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | $ 10,000 | ||
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | $ 502,247 | $ 70,259 | |
Related parties [member] | Consulting Fees [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 59,141 | 21,466 | |
Related parties [member] | Consulting Fees One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 60,070 | 30,666 | |
Related parties [member] | Consulting Fees Two[Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 24,036 | ||
Related parties [member] | Consulting Fees [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 9,200 | ||
Related parties [member] | Mineral Exploration Expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 42,760 | ||
Related parties [member] | Legal Fees [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 37,036 | 2,794 | |
Related parties [member] | Rental Fees [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | 9,034 | 6,133 | |
Related parties [member] | Stock-Based Compensation for Options [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total transactions with related parties | $ 270,170 |
DISCLOSURE OF TRANSACTIONS BE_4
DISCLOSURE OF TRANSACTIONS BETWEEN RELATED PARTIES EXPENSES (Details) (Parenthetical) | 12 Months Ended |
Jan. 31, 2022CAD ($) | |
Stock-Based Compensation for Options [Member] | |
IfrsStatementLineItems [Line Items] | |
Purchases of goods, related party transactions | $ 1,390,000 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details Narrative) - CAD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Interest expense | $ 118,144 | $ 105,766 |
Forgiveness of debt with related party | 16,925 | |
Prepaid consulting fees | 7,120 | |
Related parties [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest expense | $ 118,144 | $ 104,422 |
DESCRIPTION OF REPORTABLE SEGME
DESCRIPTION OF REPORTABLE SEGMENT TO WHICH INDIVIDUAL ASSET (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Equipment | $ 22,637 | $ 33,882 | $ 1,056 | |
Exploration and evaluation assets | 821,773 | 900,463 | $ 864,270 | $ 864,270 |
Chile [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Equipment | 22,637 | 33,882 | ||
Exploration and evaluation assets | 821,773 | 900,463 | ||
Total property plant and equipment | $ 844,410 | $ 934,345 |
DISCLOSURE OF TAX RECONCILIATIO
DISCLOSURE OF TAX RECONCILIATION (Details) - CAD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | [1] | |
Net loss before tax | $ (1,622,000) | $ (210,654) | |
Statutory income tax rate | 27.00% | 21.00% | |
Expected income tax recovery at statutory income tax rates | $ (438,000) | $ (44,000) | |
Non-deductible expenditures | 90,924 | ||
Difference in foreign tax rates, foreign exchange | 5,112 | ||
Other | (136,333) | (57,571) | |
Adjustment to prior year provisions versus statutory tax returns | 39,409 | 72,907 | |
Change in valuation allowance | 444,000 | 23,552 | |
Income tax recovery | |||
[1] | Restated for change in presentation currency (Notes 2(c) and 5) |
DISCLOSURE OF DEFERRED TAXES (D
DISCLOSURE OF DEFERRED TAXES (Details) - CAD ($) | Jan. 31, 2022 | Jan. 31, 2021 | [1] |
Federal loss carryforwards | $ 1,267,000 | $ 1,010,000 | |
Foreign loss carryforward | 1,359,000 | 1,206,000 | |
Mineral properties | 38,000 | 38,000 | |
Deferred tax asset gross | 2,664,000 | 2,254,000 | |
Valuation allowance | (2,664,000) | (2,254,000) | |
Net deferred tax asset | |||
[1] | Restated for change in presentation currency (Notes 2(c) and 5) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Jan. 31, 2022CAD ($) | |
Operating loss carry forward | $ 5,704,000 |
Tax losses | $ 5,035,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | May 16, 2022CAD ($)shares | May 17, 2021CAD ($)$ / shares | Feb. 10, 2021CAD ($) | Jun. 02, 2022CAD ($)$ / sharesshares | May 14, 2021$ / shares | May 14, 2021$ / shares | Jan. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||||||
Par value per share | (per share) | $ 0.15 | $ 0.34 | $ 0.41 | ||||
Proceeds from issuing shares | $ 577,450 | $ 6,424,684 | |||||
Warrant exercise price | $ / shares | $ 0.20 | ||||||
Interest rate | 8.00% | ||||||
Major ordinary share transactions [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Proceeds from issuing shares | $ 496,300 | ||||||
Payment for finders fees | $ 30,314 | ||||||
Major ordinary share transactions [member] | Non-Brokered Private Placement [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of shares issued | shares | 6,666,667 | ||||||
Par value per share | $ / shares | $ 0.15 | ||||||
Proceeds from issuing shares | $ 1,000,000 | ||||||
Major ordinary share transactions [member] | Warrant Shares [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of shares issued | shares | 202,090 | ||||||
Warrant exercise price | $ / shares | $ 0.30 | ||||||
Major ordinary share transactions [member] | Warrant Shares One [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Warrant exercise price | $ / shares | $ 0.60 | ||||||
Non-adjusting Events Period [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Notes payable | $ 432,702 | ||||||
Interest rate | 8.00% |