Peru's Milpo says Votorantim buys 5 percent stake

LIMA, Aug 20 (Reuters) - Peruvian zinc miner Milpo (MIL.LM: Quote, Profile, Research, Stock Buzz) said on Wednesday that Brazil's Votorantim had raised its stake in the company, burnishing its position as the largest individual shareholder.

On Monday, Votorantim -- which only months ago had tried to acquire control of Milpo -- bought 5 percent of the outstanding shares on Lima's stock market.

At the time, both companies declined comment, although Milpo officials later sent a letter to Peru's securities regulator naming Votorantim as the buyer.

Votorantim is the world's third-largest producer of zinc and has mining and metals operations throughout Latin America. Earlier this year, it made an offer to boost its stake in Milpo to control the Peruvian miner.

Before the bid, Votorantim owned 24.88 percent of Milpo's circulating shares. Milpo executives had moved to reject the offer because they said it undervalued their company.

Milpo, which produces zinc, iron and copper, says it runs some of the lowest-cost mines in the world and has large exploration teams. ($1 dollar = 2.91 soles) (Reporting by Ricardo Serra; Writing by Dana Ford; Editing by Lisa Von Ahn)