Iofina water project on the rocks after Montana denies permit

22nd Apr 2014 10:46

Shares in iodine producer Iofina fell sharply as the group revealed a new water distribution project was on the rocks. The AIM-listed company had applied to the Montana Department of Natural Resources & Conservation (DNRC) for a water permit in order to start up a 200,000-barrels-per-day industrial water business, which would remain non-core, but provide "robust upside" from the use of existing assets. However, the company has been told by the DNRC that its "preliminary determination" is to turn down the group's application for water rights.Iofina is now entitled to a hearing with the State to register its disagreement with the preliminary decision of the DNRC and further explain the rationale behind the application and why the group believes it meets regulatory requirements. The company said it anticipated the hearing within the next 45 to 60 days.Chief Executive George Lantz said: "I believe the group's non-core water application is sound and meets or exceeds all the demands of the DNRC. We will continue to pursue approval of the application and expect the anticipated hearing to be an opportunity for the group to establish its case for the marketability of water."Shares in Iofina were down 10.6% to 59p at 10:45 on Tuesday.OH