Iofina PLC (LON:IOF), specialists in the exploration and production of iodine and manufacturers of specialty chemical products, has announced that its subsidiaries Iofina Chemical Inc., and Iofina Resources Inc., have received loans totalling US$1.09mln from the US government.
The loans come under the US Small Business Administration's Paycheck Protection Program (PPP) which is part of the Coronavirus Aid Relief and Economic Security Act (CARES).
READ: Iofina seeking alternative sources for brine at IO#08 plant in western Oklahoma
PPP loans, or a portion of the loan, may be forgivable if loan proceeds are used for eligible purposes, including employee retention and payroll.
At this time, the group said, it expects a significant majority of funds received to be eligible for forgiveness under the program.
As previously reported on May 4,2020, Iofina added, brine to its IO#8 plant in western Oklahoma has been reduced and the plant is currently not operating at this time.
Whilst not certain, the company said it expects viable brine volumes to return to IO#8 in the third quarter of 2020 as the US economy recovers and oil prices stabilize.
The company added that its four other IOsorb iodine plants are unaffected and continue to operate as expected.