Southern African Resources (SAR) has confirmed that it is seeking to raise more than £15 million to be used for exploration projects in the pgm industry.

The AIM-listed mineral exploration company will seek to generate funds by placing 51,655,555 shares, at 30 pence per share, with leading North American financial institutions.

Initially the money will be used to help bankroll a feasibility study on the firm's first pgm mine project, located in the Bushveld Igneous Complex in South Africa.

SAR says it hopes the resource will utilamtely produce 300,000 ounces per annum for a minimum period of 20 years.

SAR chief executive officer Roy Pitchford commented: "Raising this capital is another step forward in the company's objective of becoming a premier institutional-quality investment opportunity in the pgm sector.”

“In welcoming these leading financial institutions to SAR's register, we are building an excellent institutional investor base capable of supporting our development into a major pgm producer."

Mr Pitchford added that he believed the nascent company was now “better positioned than ever to emerge as the most attractive investment vehicle in the pgm sector”.

It is expected that dealings in the AIM-listed shares will commence on 21st September 2004.