Lonmin has increased its attempts to buy out the remaining shares in Messina, hoping that the new offer will ensure the much-anticipated acquisition of the South African mining company.

Officials for Lonmin confirmed that it has upped its bid to 45 rand per share, increasing the overall value of the stake to R76.5 million, following an updated opinion by PricewaterhouseCoopers.

The platinum miner has raised its original offer by a third in its determination to access the 8.5 per cent stake it needs to complete ownership of Messina.

Having previously acquired Southern Platinum, which held a 91.5 per cent interest in Messina, Lonmin is keen to access the remaining shares and has pledged to invest $75 million over three years to ensure the company recovers from its current financial difficulties.

It plans to raise production at the mine from 45,000 to 70,000 ounces a year by switching to more effective processes and opening new levels.

Lonmin is currently the focus of its own takeover rumours and analysts have indicated that Xstrata is best placed to make the bid. The miner is seen as a good value target, especially for Xstrata, which has expressed interest in extending into platinum projects.



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