Grupo Mexico can use share guarantee in offer-court

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MEXICO CITY, June 3 (Reuters) - Americas Mining Corporation said on Wednesday a court granted parent Grupo Mexico the right to post a noncash guarantee to secure a motion of stay in its fight for control of bankrupt U.S. miner Asarco.

Americas Mining Corporation said it would be allowed to place shares of Peruvian mining unit Southern Copper Corporation (PCU.N) in escrow instead of using a cash bond to guarantee its offer, as was requested by Arizona-based Asarco, a bankrupt former subsidiary of copper giant Grupo Mexico.

Grupo Mexico (GMEXICOB.MX) bought Asarco in 1999 but lost board control after the company went bankrupt in 2005 amid more than $1 billion in environmental damage and asbestos claims. Grupo Mexico now wants to regain control of Asarco.

On Tuesday, Grupo Mexico said it raised the cash component of its offer for Asarco as it tries to top bids from rival Sterlite Resources and a hedge fund.

Grupo Mexico said it would contribute $1.55 billion to Asarco, lifting the total amount of cash on hand in the Asarco estate available for distribution to its creditors to $2.9 billion.

The Mexican company had previously offered $1.3 billion cash and a $250 million loan to bring Asarco out of bankruptcy.

India's Sterlite Industries (STRL.BO), an affiliate of London-listed Vedanta Resources Plc (VED.L), has offered $1.7 billion in cash and securities for Asarco.

Hedge fund Harbinger Capital Partners, one of Asarco's largest bondholders, has offered $500 million cash and the assumption of some of Asarco's liabilities. (Reporting by Noel Randewich, editing by Maureen Bavdek)