Condensed Consolidated Interim Financial Statements
PROVIDENCE GOLD MINES INC.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three months ended March 31, 2022
(Stated in Canadian Dollars)
Unaudited – Prepared by Management
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
Under National Instrument 51 -102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the
interim financial statements, they must be accompanied by a notice indicating that the financial statements have not
been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of
the Company have been prepared by and are the responsibility of the Com pany’s management. The Company’s
independent auditor has not performed a review of these financial statements in accordance with standards
established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an
entity’s auditor.
PROVIDENCE GOLD MINES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
Unaudited – Prepared by Management
(Stated in Canadian Dollars)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
March 31, December 31,
2022 2021
ASSETS
Current assets
Cash $ 35,122 $ 53,197
Accounts receivable 4,567 5,748
Prepaid expenses and advances 19,285 27,537
Total current assets 58,974 86,482
Non-current assets
Equipment, net - 3,879
Right-of-use asset - 2,824
Exploration and evaluation assets – Note 5 2,618,727 2,589,027
Total non-current assets 2,618,727 2,595,730
Total Assets $ 2,677,701 $ 2,682,212
LIABILITIES
Current liabilities
Trade and other payables – Note 7 $ 164,126 $ 74,084
Lease liability - 2,934
Total liabilities 164,126 77,018
EQUITY
Share capital – Note 6 6,169,710 6,169,710
Equity reserves – Note 6 797,983 797,983
Shares subscribed – Note 6 7,000 -
Accumulated deficit (4,461,118) (4,362,499)
Total Equity 2,513,575 2,605,194
Total Liabilities and Equity $ 2,677,701 $ 2,682,212
Nature of Operations and Going Concern – Note 1
APPROVED ON BEHALF OF THE DIRECTORS:
“Ronald Coombes” Director “Thomas Kennedy” Director
PROVIDENCE GOLD MINES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
Unaudited – Prepared by Management
(Stated in Canadian Dollars)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Three Months Ended
March 31,
2022 2021
Expenses:
Accounting and audit fees – Note 7 $ 15,000 $ 15,000
Amortization 6,703 8,934
Consulting fees – Note 7 33,540 25,000
Foreign exchange 170 (346)
Legal and corporate services – Note 7 6,352 9,900
Management fees – Note 7 12,000 12,000
Marketing 5,000 11,000
Office, rent and administration 10,064 21,359
Shareholder communications 1,436 26,019
Stock-based payments – Notes 6 and 7 - 32,300
Transfer agent and filing fees 8,156 5,219
Total expenses (98,421) (166,385)
Other Items:
Interest on lease liabilities (198) (464)
Net loss and comprehensive loss for the period $ (98,619) $ (166,849)
Basic and diluted loss per share $ (0.00) $ (0.00)
Weighted average shares outstanding – basic and
diluted 60,109,075 55,057,004
PROVIDENCE GOLD MINES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
Unaudited – Prepared by Management
(Stated in Canadian Dollars)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Three Months Ended
March 31,
2022 2021
Operating Activities:
Net loss for the period $ (98,619) $ (166,849)
Items not involving cash:
Amortization 6,703 8,934
Interest on lease liabilities 198 464
Stock-based payments - 32,300
Changes in non-cash working capital items:
Accounts receivable 1,181 714
Prepaid expenses and advances 8,252 32,256
Trade and other payables 62,910 8,861
(19,375) (83,320)
Investing Activity:
Investment in exploration and evaluation assets (5,700) (66,343)
(5,700) (66,343)
Financing Activities:
Shares subscribed 7,000 -
Payments on lease liability - (8,947)
7,000 (8,947)
Change in cash (18,075) (158,610)
Cash, beginning 53,197 514,455
Cash, end $ 35,122 $ 355,845
Supplemental cash flow information:
Interest paid $ - $ -
PROVIDENCE GOLD MINES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
Unaudited – Prepared by Management
(Stated in Canadian Dollars)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Number of
Shares
Outstanding
Share
capital
Equity
reserves
Advance share
subscriptions
received
Accumulated
deficit
Total
equity
Balance – December 31, 2020 55,057,004 $ 5,834,604 $ 748,224 $ - $ (3,717,023) $ 2,865,805
Stock-based payments - - 32,300 - - 32,300
Net loss for the period - - - - (166,849) (166,849)
Balance – March 31, 2021 55,057,004 $ 5,834,604 $ 780,524 $ - $ (3,883,872) $ 2,731,256
Balance – December 31, 2021 60,109,075 $ 6,169,710 $ 797,983 $ - $ (4,362,499) $ 2,605,194
Shares subscribed - - - 7,000 - 7,000
Net loss for the period - - - - (98,619) (98,619)
Balance – March 31, 2022 60,109,075 $ 6,169,710 $ 797,983 $ 7,000 $ (4,461,118) $ 2,513,575
PROVIDENCE GOLD MINES INC.
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2022 and 2021
(Stated in Canadian Dollars)
Note 1 Nature of Operations and Going Concern
Providence Gold Mines Inc. (the “Company”) was incorporated on February 16, 2010 under the
Business Corporations Act of British Columbia . It commenced operations on April 18, 2011. The
Company is in the process of exploring and evaluating its mineral property located in California, United
States.
The Company’s principal business activity is mineral exploration. It is a public company which trades
on the TSX Venture Exchange (“TSX-V”) under the trading symbol “PHD” as a Tier 2 issuer and trades
on the OTCQB market under the trading symbol “PRRVF” . The address of the Company’s corporate
office and principal place of business is PO Box 42096, Surrey RPO Guildford, Surrey , British
Columbia, Canada.
These condensed consolidated interim financial statements have been prepared on the assumption that
the Company will realize its assets and discharge its liabilities in the normal course of business. As at
March 31, 2022, the Company has an accumulated deficit of $4,461,118 and has experienced negative
cash flows from operations. Management cannot provide assurance that the Company will achieve
profitable operations or become cash flow positive or raise additional funds via equity issuances or debt
instruments. Its ability to continue as a goin g concern depends upon whether it develops profitable
operations and continues to raise adequate financing.
On March 11, 2020, the World Health Organization categorized COVID -19 as a pandemic. To date,
the potential economic effects within the Company’s environment and in the global markets, possible
disruption in supply chains, and measures introduced and being introduced at various levels of
government to curtail the spread of the virus (such as travel restrictions, closures of non -essential
municipal and private operations, imposition of quarantines and physical distancing) have not had a
material impact on the Company’s operations. Nevertheless, going forward these measures could have
a material impact on the Company or the Company’s suppliers. The extent of the impact of this outbreak
and related containment measures on the Company’s future operations cannot be reliably estimated at
the date of these condensed consolidated interim financial statements.
These events and conditions create a ma terial uncertainty that may cast significant doubt on the
Company’s ability to continue as a going concern.
As the Company is in the exploration stage, the recoverability of the costs incurred to date on
exploration properties is dependent upon the existence of economically recoverable reserves, the ability
of the Company to obtain the necessary financing to complete the exploration and development of its
properties and upon future profitable production or proceeds from the disposition of the properties and
deferred exploration expenditures.
There can be no assurance that the Company will be able to raise the funds necessary to continue future
operations. Should the Company be unable to realize its assets and discharge its liabilities in the normal
course o f business, the net realizable value of its assets may be materially less than the amounts
recorded on the consolidated statements of financial position. The condensed consolidated interim
financial statements do not include adjustments to amounts and cla ssifications of assets and liabilities
that might be necessary should the Company be unable to continue operations.
PROVIDENCE GOLD MINES INC.
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2022 and 2021
(Stated in Canadian Dollars)
Note 2 Basis of Preparation
a) Statement of Compliance
These condensed consolidated interim financial statements , including comparatives, have been
prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial
Reporting . These condensed consolidated interim financial statements were approved for issue by
the Board of Directors on May 5, 2022.
These condensed consolidated interim financial statements include the accounts of the Company
and its wholly owned subsidiary. The Company’s subsidiary is Providence Gold Mines (US) Inc.,
which was incorporated in the United States of America. A subsidiary is any entity controlled by
the Company. Cont rol exists when the Company has the power to govern the financial and
operating policies of an entity; is exposed to variable returns in connection with its interest in the
entity; and a linkage exists between this power and exposure to variable returns. Subsidiaries are
included in the condensed consolidated interim financial results of the Company from the effective
date of acquisition up to the effective date of disposal or loss of control.
All intra -group transactions, balances, income and expenses are eliminated, in full, on
consolidation.
b) Basis of presentation
The Company and its subsidiary each have a functional currency of Canadian dollars, which is also
the presentation currency for the condensed consolidated interim financial statements.
These condensed consolidated interim financial statements have been prepared using the historic
cost con vention, except for financial instruments measured at fair value. These condensed
consolidated interim financial statements are also prepared using the accrual basis of accounting,
except for cash flow information.
Note 3 Summary of Significant Accounting Policies
In preparation of these condensed consolidated interim financial statements, the Company has
consistently applied the same accounting policies as disclosed in the audited consolidated annual
financial statements for the year ended December 31, 2021.
Note 4 Critical Accounting Estimates and Judgments
The Company makes estimates and judgments about the future that affect the reported amounts of assets
and liabilities. Estimates and judgments are continually evaluated based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances. In the future, actual experience may differ from these estimates and judgments.
The effect of a change in accounting estimate is recognized prospectively by including it in the
Company’s profit or loss in the period of the change, if it affects that period only, or in the period of
the change and future periods, if the change affects both.