Iofina plc (LON:IOF) has told investors that a regulatory snub in the State of Montana will have no impact on the core operations.
The company noted in a stock market statement that the Montana District Court has made a ruling that goes against its non-core Water Depot Project.
The court ruling was in favour of the Department of Natural Resources and Conservation (DNRC), ruling that the DNRC's final order in respect of a water permit application was reasonable, and as such Iofina will not be able to develop the non-core asset further with its existing water permit application.
Iofina emphasised that in its core business the iodine plants are on-track to produce between 250-270 million tonnes of crystalline iodine in the second half of 2016.
“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,” it added.