In order to match a rival offer from a Chinese entity, Cape Lambert Resources Ltd has increased its takeover bid for iron ore explorer DMC Mining Ltd. It increased its offer from 50 cents per share to 53 cents per share. Now, the target values at $46.03 million.

The shareholders of DMC Mining were advised by the Company to take no action in relation to the bid. The Company though, considers the offer and a rival offer by China's Meijin Energy Group Ltd.

Initially, Cape Lambert bid 46 cents per share, or $40 million, and then it upped its offer to 50 cents per share, or $43.3 million, in the middle of last month.

Meijin increased its offer from 50 cents per share to 53 cents per share, in the month of May. DMC Mining shares closed at half a cent higher at 55 cents on Tuesday, which indicated that the market is expecting a better offer to be made.