Montana court rules against Iofina water permit

Iodine exploration and production specialist Iofina issued a statement to the market on Thursday, noting the recent decision of the Montana District Court in respect of its water depot project in the US state.

The AIM-traded company said the court has ruled in favour of the Department of Natural Resources and Conservation, and found that the department’s final order in respect of a water permit applied for by Iofina's wholly owned subsidiary Atlantis Water Solutions was reasonable.

Iofina said the effect of the ruling is that the the department’s denial of the company's water permit in Montana stands.

Accordingly, the company will not be able to further develop the non-core asset utilising its existing water permit application.

“[The Iofina board] accepts this decision but stresses that it will have no impact on the company's core operations at its iodine production plants, which remain on track to produce between 250-270 MT of crystalline iodine in H2 2016,” Iofina said in the statement.

“The company continues to progress the finalisation of the documentation relating to its debt restructuring and looks forward to providing a further update in this regard in due course.”