High Peak Royalties Limited (ASX: HPR) has announced the completion of the sale of its wholly-owned subsidiary, Torrens Energy (SA) Pty Ltd, to Northstar Energy Limited. High Peak Royalties is focused on building a portfolio of diversified high-value resource royalties around the world. The sale includes all Geothermal Energy Licences and applications (GEL and GELA) held by Torrens.
The final tranche of the transaction, involving the transfer of the remaining 80.10% of Torrens shares, has now been completed following Ministerial Consent of the Change in Ownership of Torrens Energy. As a result, High Peak has received the remaining 6,250,000 Northstar shares, bringing 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.
Additionally, the Department for Energy and Mining (SA) has approved a variation to the work program for the Geothermal Energy Licences, enabling feasibility studies for a 2 MW pilot-scale geothermal power demonstration project within the Torrens GELs. Northstar Energy is positioning itself as a developer of non-weather-dependent, dispatchable base-load renewable electricity and clean energy solutions. Northstar continues to progress its geothermal and clean energy development strategy, with High Peak retaining a meaningful economic interest in future outcomes through its equity holding and royalty interest.
According to High Peak Royalties Executive Chairman, James Knowles, the completion of the Torrens Energy transaction represents an important milestone, removing operational complexity and generating additional royalties while providing equity exposure to the potential of geothermal energy. Knowles expressed encouragement regarding Northstar’s progress in advancing its technology, project pipeline, and commercial engagements, particularly in the context of supporting sustainable data centre infrastructure and contributing to Australia’s Net Zero objectives.
