Shares in Iofina PLC (AIM:IOF, OTC:IOFNF) jumped 6% to 44.9p after it signed an agreement with a new brine water supplier that it expects to increase annual crystalline iodine production at its IO#11 plant in Central Oklahoma by around 50%.
The deal will give the plant, which became operational in July 2025, a second independent brine supply partner alongside its existing provider.
Iofina said the additional brine volumes are expected to generate between 45 and 65 metric tonnes of extra iodine output annually at the site once fully operational.
The company will fund the project entirely from its own resources at a cost of approximately $1.5 million, which it said it expects to recoup rapidly.
Under the terms of the agreement, Iofina will work with the new partner to build a pipeline to transport brine to IO#11 and return the de-iodised brine to the partner's disposal site, with construction mostly managed by the new partner and expected to complete in the third quarter of 2026.
The company said the existing facility already has sufficient installed capacity to handle the additional volumes, meaning no major infrastructure upgrades are required.
President and chief executive Dr Tom Becker said the deal would deliver incremental production from an existing plant with available capacity, and added that the company was pursuing it concurrently with construction of its first facility in the Permian Basin.
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