Production & Water Permit Update

RNS Number : 4717T

Iofina PLC

06 October 2014

 

6 October 2014

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

Production & Water Permit Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to update the market today on production during the month of September (the "Period") and the Company's preliminarily granted water permit application in the State of Montana.

During the Period, the Company reported a month to month 18.6% increase in production to 28.0 metric tonnes (MT) of crystallized iodine (23.6 MT, August 2014).  The Company is pleased that it reached its projected monthly target for September and its output for the second half of the period has steadily increased as it focuses on optimization of its current IOsorb® plants. 

Year-to-date, revenues through to September have surpassed the USD$20M level compared with total Company revenues in 2013 of USD$18.8M. The Company reiterates its year-end forecast of 325-350 MT of produced crystallized iodine.

With the observed operational stability, and further production history of its IOsorb® plants, moving forward Iofina will typically provide the market with quarterly operational updates.

Separately, the Company is pleased to announce that its wholly owned subsidiary, Atlantis Water Solutions LLC ("AWS"), received notice on 3 October 2014 from the Department of Natural Resources and Conservation ("DNRC") of the State of Montana that its water permit (No. 40S 30066181) has been preliminarily granted by the DNRC.  The next phase of this permit process is for a short public notice period, after which, barring any unlikely objections, the DNRC will then grant the Preliminary Permit under which AWS will operate until the completion of the Atlantis Water Depot at which time AWS will be granted its Final Permit.

The Beneficial Use Water Permit allows for the following:

·     Diversion of 3622 acre feet (AF) per year of water which is anticipated to be used in Dawson, McCone, Richland, Roosevelt and Sheridan counties within the State of Montana for the majority beneficial use by oil field services companies for oilfield development.

·     A water diversion site capable of pumping 2244 gallons per minute into tanks storing 10.74 AF.

·     A ten bay depot that is capable of 400 gallons per minute (GPM) in each bay for a total of 4000 GPM across all ten filling station bays.    Each fill station bay to be equipped with its own flow meter and five of the fill station bays to have hot water boilers which will enable a more valuable resource.  The facility will be built to withstand all winter conditions allowing for continuous use. 

The Company will not fund this non-core water project with the current Iofina cash on hand but instead seek a joint venture partner or specific project financing exclusively within Atlantis Water Solutions.

Commenting on today's update, President and CEO Dr. Tom Becker stated:  "Our iodine production from our IOsorb® plants continues to improve.  We remain focused on optimization of these plants and I am pleased with the results to date."   

"The preliminary granting of Iofina's water permit in Montana is a great accomplishment for the Company and we look forward to updating the market with regards to the future plans of our water division, Atlantis Water Solutions."

For further information, please contact:                                                                                              

Dr. Tom Becker, CEO & President

Iofina plc

Tel: [phone]

John Prior/Rupert Krefting/Paul Gillam

Numis Securities

Tel: [phone]

Rob Collins/Emily Morris/Liz Williamson

GMP Securities

Tel: [phone]

Media Contact:

Dominic Barretto/Anna Legge

Yellow Jersey PR

Tel: [phone]

About Iofina:

Iofina specializes in the exploration and production of iodine, iodine specialty chemical derivatives and produced water. Iofina's business strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America based on Iofina's WET® IOsorb® technology. Iofina has production operations in the United States, specifically in Texas, Montana, Kentucky and Oklahoma. It has complete vertical integration from the production of iodine in the field to the manufacture of the chemical end-products derived from iodine to the consumer and the recycling of iodine using iodinated side-streams from waste chemical processes in Europe, North America and Asia. Iofina utilizes its portfolio of patented and patent pending technology, proprietary methods and trademarks throughout all business lines.

www.iofina.com

 

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