Canada-based Klondike Gold Corp. said Wednesday it is launching a bid to increase its stake in Lonestar Gold Inc., a privately held British company that owns the right to develop a prospect near Dawson City, Yukon Territory.

Klondike said it aims to acquire as much as 75 percent of the outstanding shares in Lonestar by offering to swap three of its shares for one Lonestar shar.

Klondike, which currently owns a minority stake in Lonestar, said that if it is successful it would ask Lonestar's top managers to remain.