LONDON (Bloomberg) — Griffin Mining Ltd., a UK company that mines zinc in China, will offer C$27 million ($22 million) for Ivernia Inc., owner of the Magellan lead mine.

Griffin will offer 15 Canadian cents per Ivernia share in cash and seek to acquire or repay C$33.4 million of convertible notes if the offer is successful, the Bermuda-registered company said yesterday in a statement.

Ivernia, based in Toronto, said in a separate Market Wire statement it will evaluate the "unsolicited" bid and advised its investors to take no action.

The Magellan mine in Western Australia state, which ships about two percent of global mined lead supply, has been shut since March 2007 after exports were banned from the port of Esperance because lead dust from cargoes killed birds and infected residents' blood. Griffin has the cash and ability to bring Magellan back into production, it said today.

Magellan may have the capacity to produce as much as 100,000 metric tons of lead annually, Macquarie Group Ltd. said in August.

In December, Griffin temporarily suspended its Caijiaying zinc and gold mine in China because of falling metal prices.

The mine produced 11,748 tons of zinc concentrate in the first half of last year, according to Griffin's website.