Galantas Gold : Financial Statements Q1 2020

GALANTAS GOLD CORPORATION

Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

Three Months Ended March 31, 2020

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of Galantas Gold Corporation (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditors.

Galantas Gold Corporation

Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars)

(Unaudited)

As at March 31, 2020

As at December 31, 2019

ASSETS

Current assets

Cash and cash equivalents

Accounts receivable and prepaid expenses (note 4) Inventories (note 5)

$

936,560$

1,913,420

339,993416,699

78,77870,328

Total current assets

Non-current assets

Property, plant and equipment (note 6)

Long-term deposit (note 8)

Exploration and evaluation assets (note 7)

1,355,3312,400,447

21,921,78021,159,716

528,120515,220

719,719661,726

Total non-current assets

23,169,619

22,336,662

Total assets

$

24,524,950

$

24,737,109

EQUITY AND LIABILITIES

Current liabilities

Accounts payable and other liabilities (note 9)

Current portion of financing facilities (note 10)

Due to related parties (note 15)

Convertible debenture (note 11)

$

1,723,322 393,659

$

2,131,715 242,280

5,003,7284,719,058

1,534,0021,400,594

Total current liabilities

Non-current liabilities

Non-current portion of financing facilities (note 10)

Decommissioning liability (note 8)

8,654,7118,493,647

1,363,5471,440,185

Total non-current liabilities

Total liabilities

597,612 1,961,159 10,615,870

580,303 2,020,488 10,514,135

Equity

Share capital (note 12(a)(b)) Reserves

50,123,91050,123,910

9,782,8339,416,412

Deficit

Total equity

(45,997,663) 13,909,080

(45,317,348) 14,222,974

Total equity and liabilities

$

24,524,950

$

24,737,109

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

Going concern (note 1)

Contingency (note 17)

Events after the reporting period (note 18)

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Galantas Gold Corporation

Condensed Interim Consolidated Statements of Loss (Expressed in Canadian Dollars)

(Unaudited)

Three Months Ended

March 31, 2020 2019

Revenues

Jewellery sales (note 14)

Cost and expenses of operations

Cost of sales

Depreciation (note 6)

$

-

$

-35,83670,026

88,72787,405

124,563

157,431

Loss before general administrative and other expenses

(124,563)

(157,431)

General administrative expenses

Management and administration wages (note 15) Other operating expenses

Accounting and corporate Legal and audit

Stock-based compensation (note 12(d)) Shareholder communication and investor relations Transfer agent

Director fees (note 15) General office

Accretion expenses (notes 8, 10 and 11)

Loan interest and bank charges less deposit interest (notes 10, 11 and 15)

141,222191,688

94,06045,226

14,14413,895

42,11815,574

(16,288)135,340

47,07648,133

27,7361,901

6,2506,250

2,7132,599

146,12157,046

151,61684,777

656,768602,429

Other expenses

Foreign exchange (gain) loss

(101,016)19,657

(101,016)

19,657

Net loss for the period

$ $

(680,315)$

(779,517)

Basic and diluted net loss per share (note 13)

(0.02)$

(0.03)

Weighted average number of common shares outstanding - basic and diluted (i)

32,321,472

29,968,531

(i) Adjusted for 10:1 share consolidation effective March 31, 2020 (note 13).

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

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Galantas Gold Corporation

Condensed Interim Consolidated Statements of Comprehensive Loss (Expressed in Canadian Dollars)

(Unaudited)

Three Months Ended

March 31,

2020 2019

Net loss for the period	$	(680,315)$	(779,517)
Other comprehensive income (loss)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	382,709	(4,982)
Total comprehensive loss	$	(297,606)$	(784,499)

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

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Galantas Gold Corporation

Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars)

(Unaudited)

Three Months Ended

March 31, 2020 2019

Operating activitiesNet loss for the period Adjustment for:

Depreciation (note 6)

Stock-based compensation (note 12(d)) Interest expense (notes 10, 11 and 15) Foreign exchange (gain) loss

Accretion expenses (notes 8, 10 and 11) Non-cash working capital items:

Accounts receivable and prepaid expenses Inventories

Accounts payable and other liabilities Due to related parties

$

(680,315)$

(779,517)

88,727

87,405

(16,288)135,340

151,27590,164

(38,419)18,525

146,12157,046

84,588(974)

(6,526)

-

• (445,617)(146,655)

Net cash and cash equivalents used in operating activities

92,409 (624,045)

74,356 (464,310)

Investing activities

Purchase of property, plant and equipment Exploration and evaluation assets

• (325,769)(1,951,052)

Net cash and cash equivalents used in investing activities

(41,424) (367,193)

- (1,951,052)

Financing activities

Repayment of financing facilities (note 10)

(8,353)(1,766)

Net cash and cash equivalents used in financing activities

(8,353)(1,766)

Net change in cash and cash equivalents

Effect of exchange rate changes on cash held in foreign currenciesCash and cash equivalents, beginning of period

(999,591)

(2,417,128)

22,731 1,913,420

(4,239) 6,188,554

Cash and cash equivalents, end of period

$ $

936,560 936,560 -

$ 3,767,187

Cash

Cash equivalents

$ 3,767,187 -

Cash and cash equivalents

$

936,560

$ 3,767,187

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

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