AntioquiaGold Inc


December 31, 2020 and 2019
(Expressed in Canadian Dollars)

Independent auditor’s report

To the Shareholders of Antioquia Gold Inc.


We have audited the consolidated financial statements of Antioquia Gold Inc. (the “Company”), which comprise the consolidated statements of financial position as at December 31, 2020 and December 31, 2019, and the consolidated statements of loss and comprehensive loss, consolidated statements of changes in shareholders’ equity (deficiency) and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2020 and December 31, 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Materiality uncertainty related to going concern

We draw attention to Note 1 in the consolidated financial statements, which indicates that the Company had a cumulative deficit of $61,737,210 as at December 31, 2020 and, as of that date, the Company’s current liabilities exceeded its current assets by $115,429,309. As stated in Note 1, these events or conditions, along with other matters, indicate that material uncertainties exist that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon

Management is responsible for the other information. The other information comprises the Management Discussion and Analysis but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

(Expressed in Canadian dollars)


Antioquia Gold Inc. (“Antioquia” or the “Company”) was formed by way of amalgamation on April 25, 1997 and continued under the laws of British Columbia on March 24, 2016. The registered address of Antioquia is 2800 Park Place, 666 Burrard St., Vancouver, BC, V6C 2Z7. The Company is listed on the TSX Venture Exchange (“TSX-V”) under the symbol “AGD”. The Company trades on the OTCQX pink sheets, under the symbol “AGDXF”.

The Company’s primary focus is the operation of its Cisneros underground gold mine located outside Medellin Colombia. Commercial production was declared at the Cisneros mine on March 1, 2019.

These consolidated financial statements have been prepared using International Financial Reporting Standards (“IFRS”) applicable to a going concern, which assumes continuity of operations and realization of assets and settlement of liabilities in the normal course of business for the foreseeable future, which is at least, but not limited to, one year from December 31, 2020. At December 31, 2020, the Company had a cumulative deficit of $61,737,210 (December 31, 2019 $56,101,202), and a working capital deficit of $115,429,309 (December 31, 2019 – working capital deficit of $111,488,075). The Company’s ability to continue as a going concern is dependent upon its ability to achieve profitable operations, generate sufficient funds and/or continue to obtain sufficient capital from investors to meet its current and future obligations. The Company has term loan with a related party (Note 10) which is due on demand. The recoverability of amounts shown for property and equipment is dependent on future profitable operations or proceeds from disposition of mineral interests. As a result of these risks, there is material uncertainty which may cast significant doubt as to the appropriateness of the going concern assumption. There is no assurance that the Company’s initiatives will continue to be successful. These consolidated financial statements do not reflect the adjustments to the
carrying values of assets and liabilities and the reported expenses and consolidated statements of financial position classifications that would be necessary if the going concern assumption was inappropriate. These adjustments could be material.

During the first months of 2020, the Coronavirus COVID19 emerged, and as of the date of issuance of these financial statements, the effect it had on the results, cash flows and financial situation of the Company was not material, despite the Colombian decree 457 of 2020 requiring preventive isolation at the national level in the country, but allowing the continuation of essential sectors, including mining. As of the date of these Financial Statements, operations have continued. In an effort to protect workers and neighboring communities the Company implemented protective measures including physical distancing, deep cleaning, avoiding exposure for at risk individuals and education on good hygiene