As a general rule, the operator will not be required to allocate the security deposit to cover certain expenses, but, if necessary, to use it. As a result, mining companies have used these agreements for construction work, development of day-to-day operations and even obtaining funds to repay unpaid debts from official lenders. Capstone Mining Corp. is a Canadian base metals company focused on copper. Our two producing mines are the Pinto Valley copper mine in Arizona, USA, and the Cozamin copper silver mine in Zacatecas, Mexico. In addition, Capstone owns 70% of Santo Domingo, a fully approved copper-iron-gold project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone`s strategy is to focus on optimizing operations and assets in politically stable, mine-friendly regions that focus on America. We are committed to the responsible development of our assets and the environments in which we operate. Headquartered in Vancouver, Canada, we are listed on the Toronto Stock Exchange (TSX). For more information, see www.capstonemining.com. Of course, such restrictions are stricter on the part of the operator, as a change of control can result in a reorganization process that would ultimately affect the decision to operate the mining operation, provided the streaming agreement is respected. Accordingly, a change of control by the operator would not be permitted unless the operator accepts that the obligations arising from the streaming contract remain fully in effect despite the change of control, or the obligations of the operator arising from the contract are taken or, at the very least, guaranteed by a third party for the benefit of the purchaser, in which case the operator is exempt from its obligations. Furthermore, in streaming agreements, it is particularly important that the operator guarantees and guarantees the buyer the legal and exclusive ownership of the streaming metal; the absence of charges and other rights in favour of third parties; and the legal opportunity to value, produce and sell the metal in streaming with preferential and exclusive rights.

These include compliance with all relevant environmental, health and safety and other applicable rules, as well as compliance with all legal authorizations necessary for the use and production of the metal in electricity during the duration of the agreement, which implies the absence of legal disputes with the surrounding municipalities (known as the „social licence“ for the operation of a mining project). The tax on payments and deliveries of metals under streaming agreements depends on the tax legislation of the parties` jurisdictions and, if they differ, on the entry into force of double taxation agreements. In any event, streaming agreements generally provide that all shipments of metals in streaming or payments made by a party are made without deduction, withholding or charge on the basis of taxes collected by the competent authorities.