Platinum Australia Limited (PLA) has confirmed it is to acquire a major holding in the 24 Rivers platinum group metals (pgm) project in South Africa.

The Perth-based company explained it had signed a Heads of Agreement allowing it to purchase up to 74 per cent of the venture.

The project is located on the northern limb of South Africa's Bushveld Complex, which produces over 70 per cent of the world's platinum.

PLA managing director John Lewins commented: "The acquisition of our interest in the 24 Rivers Project provides PLA with an exciting exploration opportunity in the much sought after northern limb of the Bushveld Complex."

Under the terms of agreement PLA will pay 24 Rivers AUS$43,000 for the right to earn into the 24 Rivers pgm project.

PLA will then earn a 30 per cent interest in the 24 Rivers Joint Venture for the expenditure of AUS$430,000 and a further 19 per cent stake for the expenditure of a further AUS$430,000.

An additional 25 per cent will be given to PLA for completing a Full Feasibility Study on the project.

Exploration work on the project will commence immediately after completion of the due diligence stage.