High Peak Royalties (ASX:HPR) has completed the sale of its wholly owned subsidiary, Torrens Energy (SA), including all associated South Australian Geothermal Energy Licences and Licence Applications to Northstar Energy.
The transaction, approved by the Department for Energy and Mining (SA), was executed in two tranches, culminating on Dec. 24, with High Peak receiving a total of 12.5 million Northstar shares and retaining a 1% gross royalty over geothermal energy produced from the Torrens licences.
The approval also included a variation to the work program, 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, including its 2 MW Project AUSI 1 near Roma, Queensland, and exploring new technologies such as the downhole heat exchanger.
High Peak Executive Chairman James Knowles highlighted that the completion of the Torrens Energy transaction reduces operational complexity, generates additional royalties, and provides ongoing equity exposure to Northstar's geothermal initiatives, supporting Australia's net zero goals.