Iofina inks deal to build new iodine production plant

27th Sep 2024 11:18

(Sharecast News) - Iofina announced an agreement to build a new iodine production plant, IO11, in Western Oklahoma on Friday.

The AIM-traded firm said the plant would be developed in collaboration with an existing brine water supply partner, and would be located near the company's existing IO9 and IO10 plants.

It said the site was chosen for its strong brine supply and proximity to significant oil and gas development in the region.

The plant, which would use Iofina's 'IOsorb' technology to extract iodine from brine water, was expected to become operational in 2025.

Iofina said it was currently working with its partner to finalise the design to maximise iodine production at the new facility.

Details on the plant's capacity and costs would be disclosed once the design was completed.

The board said the project would be financed through the company's cash resources, with an option to draw on loan facilities if needed.

Initial work on IO11 was set to begin in the fourth quarter, with a more detailed timeline to be provided as construction progresses.

"We are pleased to announce that an agreement has been signed with our chosen brine water partner for our next plant, IO11, in our newest core area in Oklahoma," said president and chief executive officer Dr Tom Becker.

"This continues our recent track record over the past three years of increased growth rates in iodine production, as we believe this is the optimal strategy to help drive long-term value for the company and its shareholders."

At 1020 BST, shares in Iofina were up 6.18% at 20.44p.

Reporting by Josh White for Sharecast.com.