Newly listed Australian gold base metals and uranium miner Mining Group Limited announced it has bought an 80 per cent interest in the Philippines' Comval Project, effectively expanding its gold and base metal tenement overseas.

Located within the East Mindanao Ridge, said to be the Philippines' world-class copper and gold region, the Comval Project is the Mining Group Limited's first offshore project.

Proactive Investors reported that Mining Group Limited effected on Monday morning a trading halt to announce the binding Heads of Agreement that it signed with Cadan Resources Corp.

In the agreement, it stipulated that Mining Group Limited acquired 80 per cent interest in Philco Mining Corp, which holds a 100 per cent interest in exploration permits EP1 and EP2 comprising the Comval Project.

Mining Group Limited will settle the deal via an initial payment of A$1 million to Cadan as a secured loan, pending shareholder approval.

The company will then issue 2.6 million Mining Group shares and a second cash payment of $2 million to Cadan. Upon completion of the acquisition, Cadan's 20 per cent interest in Philco Mining will be freely carried until Mining Group Limited has spent a minimum of A$48 million on the project.

Mining Group Limited will undertake a capital raising comprising the issue of up to 15 million shares at $0.20 each to raise up to $3 million to fund the needed acquisition and working capital.

The Comval Project's tenement area covers 4,310 hectares. Over 24,000 metres of drilling had been completed.

The East Mindanao Ridge holds major deposits such as the 10.3-million gold ounce Kingking, which also contains 5 billion pounds of copper, the 10-million ounce Dilwalwal and the 2.5-million ounce CoO.

The Mining Group Limited is an Australian company whose primary objective is to acquire commercially significant mineral properties that can readily be bought into production.

On September 2011 quarter, Mining Group Limited started the field exploration at its Boorara and Teutonic Projects.