High Peak Royalties Limited (ASX:HPR) has announced the completion of the sale of its subsidiary, Torrens Energy (SA) Pty Ltd, to Northstar Energy Limited. High Peak Royalties is focused on building a diversified portfolio of resource royalties around the world, partnering with capable operators to secure royalties over high-value producing assets. The transaction includes all Geothermal Energy Licences and applications (GEL and GELA) held by Torrens.
The Department for Energy and Mining (SA) (DEM) has approved the change in control of Torrens Energy (SA) Pty Ltd, paving the way for the finalisation of the agreement. With the completion of the second tranche, High Peak has received an additional equity consideration, bringing the total consideration for the transaction to 12,500,000 Northstar shares and a 1.0% gross royalty over geothermal energy produced from the Torrens GELs and GELAs.
Furthermore, the DEM has approved a variation to the work programme, enabling feasibility studies for a 2 MW pilot-scale geothermal power demonstration project in South Australia. Northstar Energy is actively advancing its geothermal and clean energy development strategy, with High Peak retaining a meaningful economic interest in future outcomes through its shareholding and royalty interest.
According to High Peak Royalties Executive Chairman Mr James Knowles, the deal removes operational complexity from High Peak’s business, generates additional royalties, and gains equity exposure to the potential of geothermal energy. Knowles also noted Northstar’s progress in demonstrating the economic and commercial potential of non-weather-dependent, dispatchable base-load renewable energy.
