High Peak Royalties Limited (ASX: HPR), a company building a portfolio of diversified high-value resource royalties around the world, has announced the completion of the sale of its wholly-owned subsidiary, Torrens Energy (SA) Pty Ltd (Torrens), to Northstar Energy Limited. The transaction, initially announced on March 20, 2025, involves the transfer of all Geothermal Energy Licences and applications (GEL and GELA) held by Torrens to Northstar. The Department for Energy and Mining (DEM) in South Australia has approved the change in control of Torrens Energy (SA) Pty Ltd.
The completion of the transaction delivers additional equity considerations to High Peak, increasing the total consideration to 12,500,000 Northstar shares and a 1.0% gross royalty over geothermal energy produced from the Torrens GELs and GELAs. The final tranche of 6,250,000 Northstar shares has now been issued to HPR. High Peak no longer holds direct ownership of the Torrens geothermal tenements but retains ongoing economic exposure through its equity holding in Northstar and its retained royalty interest.
DEM has also approved a variation to the work programme conditions applying to the Geothermal Energy Licences, enabling feasibility studies for a 2 MW pilot-scale geothermal power demonstration project in South Australia. Northstar Energy continues to advance its geothermal and clean energy development strategy. They are targeting applications where continuous power supply is required and progressing project development activities to develop an initial 2 MW base-load renewable electricity generation project near Roma, Queensland.
High Peak Royalties Executive Chairman James Knowles stated that the completion of the Torrens Energy transaction represents an important milestone for High Peak, removing operational complexity, generating additional royalties, and gaining equity exposure to geothermal energy. He expressed encouragement with Northstar’s progress in advancing its technology, project pipeline, and commercial engagements, particularly in supporting the sustainable build-out of data centre infrastructure and contributing to Australia’s Net Zero objectives.
