High Peak Secures 12.5M Northstar Shares and 1% Royalty in Torrens Deal

Transaction Completion Marks Strategic Shift

High Peak Royalties Limited (ASX – HPR) has officially completed the sale of its wholly owned subsidiary, Torrens Energy (SA) Pty Ltd, to Northstar Energy Limited. This transaction, first announced in March 2025, transfers ownership of key South Australian geothermal assets, including multiple Geothermal Energy Licences and applications, to Northstar. The South Australian Department for Energy and Mining (DEM) has granted the necessary approvals for the change in control, clearing the way for the final tranche of the deal.

The sale was structured in two tranches, with the first completed in March and the second finalised on 24 December 2025. In return, High Peak has received a total of 12.5 million Northstar shares and retains a 1% gross royalty on geothermal energy produced from the Torrens licences. This arrangement aligns with High Peak’s broader strategy of maintaining economic exposure through equity and royalties while reducing operational complexity.

Regulatory Green Light for Pilot Project

Alongside the transaction completion, DEM has approved a variation to the work programme for the Torrens geothermal licences. This variation allows Northstar to conduct geological and geophysical studies, process existing seismic data, and crucially, progress feasibility studies for a 2 MW pilot-scale geothermal power demonstration project in South Australia. This pilot project represents a significant step toward validating geothermal energy as a reliable, dispatchable renewable power source in the region.

Northstar’s Expanding Clean Energy Ambitions

Northstar Energy is advancing its position as a leader in non-weather-dependent renewable energy solutions. Its flagship Project AUSI 1, a 2 MW base-load renewable electricity generation initiative near Roma, Queensland, is moving toward a financial investment decision. The project aims to demonstrate the commercial viability of geothermal and hydrothermal energy technologies, supported by Northstar’s exclusive Australian licensing rights to a novel downhole heat exchanger technology.

Negotiations for a power purchase agreement covering up to 250 MW of capacity are underway, reflecting growing market demand for reliable, low-emission base-load power. Northstar’s expanding portfolio across eastern and southern Australia underscores its commitment to tapping geothermal heat resources and supporting Australia’s net-zero objectives.

High Peak’s Strategic Positioning

High Peak’s Executive Chairman, James Knowles, highlighted the transaction as a milestone that simplifies the company’s operations while securing ongoing economic benefits. By retaining equity in Northstar and a royalty stream, High Peak maintains meaningful exposure to the geothermal sector’s growth potential without direct operational responsibilities. This approach fits within High Peak’s vision of building a diversified portfolio of resource royalties globally, leveraging partnerships with capable operators to unlock value.

As Northstar progresses its technical, commercial, and regulatory milestones, High Peak stands to benefit from the maturation of these geothermal assets and the broader clean energy transition in Australia.