Platinum miner Lonmin has agreed to buy Canada-based Southern Platinum in a deal worth $190 million.

Lonmin will now control Southern Platinum's Messina platinum mine in South Africa.

Southern Platinum currently holds a 91.5 per cent stake in the Messina project.

"The offer by Lonmin provides Southern Platinum shareholders with a premium for their investment, payable in cash," said Brad Mills, chief executive of Lonmin. "It also alleviates concerns about their company's uncertain operations and financial position.

"Discussions have been held with Southern Platinum's bankers who have agreed to consider granting deferment in the event of the Messina being in breach of financial covenants until the conclusion of the acquisition by Lonmin."

Current mining operations at Messina are underway on a strike length of four kilometres and in 2004 Messina produced about 86,300 ounces of 5PGE+Au of which platinum production is estimated at 45,000 ounces.

Lonmin said potential for Messina's platinum production could rise to 75,000 ounces per year.