Iofina PLC (AIM:IOF, OTC:IOFNF) has arranged two additional loan facilities at low rates of interest to enable it to build a new iodine extraction plant, IO9, and expand its chemical operation.
The US$2.7mln loan runs for seven years at a rate of interest of 2.6% plus the one-month overnight rate, currently 1% and is earmarked for the construction of IO9.
A further US$1.66mln runs for five years at a rate of interest of 2.5% plus the overnight rate and will fund capex spending in the chemicals business.
Both loans are with its current lender, First Financial (NASDAQ:THFF) Bank, which has also extended its asset-based revolving line of credit to Iofina by a further two years.
Iofina added that production in the first half of 2022 was 234 metric tonnes (MT) of crystalline iodine from five IO plants in Oklahoma.
Forecasts beforehand had been in a range of 225-240MT.
For the second-half production is expected to rise to 255-275MT from the five plants.
Spot prices of iodine are also strong, Iofina added, and have recently topped US$70/kg.
“Iodine market fundamentals continue to be favourable and the company expects the positive momentum to be maintained through the second half of the year,” the company statement said.
Tom Becker, chief executive, added: "Being granted these new low-cost loans underlines the health of the business and the strength of our balance sheet.
“By combining these facilities with our existing cash resources, Iofina has the flexibility to accelerate its growth plans, with the aim of moving quickly to develop additional iodine production as soon as the agreement for IO9 is finalised.”