A London group that specialises in the exploration and mining of iodine and natural gas is to expand its operations after securing fresh funding through an admission to AIM.

Iofina, which has interests in the US, raised more than £15.1 million through the IPO after placing some 27.4 million ordinary shares at 55p each.

The proceeds, some £13.7 million, will fund the group’s drilling, production and extraction operations. It will also be used to buy new leases, seek additional prospects and for working capital.

The placing, which was managed by nominated adviser Strand Partners, has valued the company at some £51.6 million. Mirabaud Securities was its broker.

Chief executive David Schneider believes the group will be in a strong position due to its streamlined processes and rising demand for iodine in the US and Europe.