Junior Australian pgm explorer Platinum Australia (PLA) has secured an 80 per cent stake in the Smokey Hills region of South Africa's Bushveld Complex.

The firm says that it is hoping to deliver a 75,000-ounce a year output, covering precious metals including platinum, palladium, rhodium and gold.

Under the terms of the complex deal, PLA has entered a binding agreement to acquire 100 per cent of South African company Geoplat Resources. The funds from this deal will then be used to purchase around 80 per cent of Smokey Hills from a series of joint venture partners, who will hang on too their own stake.

Further drilling will be necessary to evaluate the project, but the deal is being hailed by the company as a key facet of its strategic growth.

Managing director John Lewins said that the new agreement would help the firm to "move from explorer and developer into producer within 18 months".

In a statement the firm also shed light on its plans for black economic empowerment (BEE).

"PLA will seek a suitable BEE partner to acquire ten per cent in the project which will provide a total BEE ownership of 15 per cent when combined with that of the local community.

"PLA is however committed to meeting the 26 per cent participation level as soon as practicable."

PLA says it will also be pursuing feasibility studies on another South African resource, the Kalplats pgm project.