Fenix Resources (ASX:FEX) requested the conversion of 53 of its 100 convertible notes in Athena Resources (ASX:AHN), according to a Monday filing with the Australian bourse.

The debt conversion will result in Fenix acquiring 265 million shares, representing a 19.84% stake, in Athena Resources.

Athena Resources has also launched a AU$2.7 million renounceable entitlement offer on a pro-rata basis, with one new share to be issued for every two existing shares at AU$0.004 per share, the filing said.

Fenix Resources will fully underwrite the offer and has committed to fully taking up entitlements to maintain its 19.8% stake, per the filing. If no other shareholders participate in the offer, Fenix Resources' stake in the exploration company could rise to 46.56%.

Fenix Resources' shares fell almost 2% in recent Monday trade, while Athena Resources jumped past 33%.

Price (AUD): $0.29, Change: $-0.01, Percent Change: -1.69%