Crescent Gold (ASX: CRE, TSE: CRA) is currently in the final stages of a takeover from Focus Minerals (ASX: FML), but in an intriguing move substantial shareholder Stone Mining announced an increased stake, and now holds 14.7% of Crescent.
Stone Mining, a company incorporated in Hong Kong, also increased its stake in Crescent last month.
Last month Crescent received an application from Stone Mining in relation to the affairs of Crescent, with Crescent declining to conduct proceedings.
Focus holds up to 83.2% of Crescent
Focus is moving towards finalising the takeover of Crescent, with Focus now holding 77.8%.
This relevant interest would be further boosted to 83.2% if Focus converted up to $13 million worth of Crescent convertible notes.
To mop up the remaining shares, the offer period was extended earlier in the week to Wednesday 14 September.
The Crescent board unanimously recommends the offer in the absence of a superior proposal.
Due to the size of the Focus holding, the company considers it unlikely that a superior proposal will eventuate.
The new Focus Minerals
The transaction will allow Focus to become one of Australia's top five gold producers, with targeted annual production of 230,000 ounces.
The JORC Resource base of the new Focus would be 4.3 million ounces, with strong growth potential across two major Western Australian mining regions.