More consolidation to come in the North West is the prediction from AIC Mines managing director Aaron Colleran after securing a $120 million deal to add the Mount Cuthbert copper assets to the company’s inventory.

The deal announced this week is the latest in a wave of recent M&A activity centred on North-West Queensland copper-gold assets, including Evolution Mining’s move on Greater Duchess project owner Carnaby Resources and the takeover of explorer Hammer Metals by Austral Resources Australia.

“I strongly believe that there will be more consolidation in the Mount Isa – Cloncurry region,” Mr Colleran said.

“The market wants, employees want, local stakeholders want fewer under-funded junior companies and more well-funded mid-tier mining companies who can advance projects, not warehouse them.

“There is also strong funding support for consolidation, as our $70 million at-market placement to Hawke’s Point has shown, and the funding support for junior explorers to drill a few holes and maintain directors’ lifestyles is drying up.”

AIC Mines’ ‘transformational’ acquisition of the Mount Cuthbert copper project comes as it boosts the processing power at its Eloise operation, 60km south-east of Cloncurry, and commits to accelerated development at its adjacent Jericho mine.

Related: ‘Great decisions’ on plant build help AIC Mines level up

The company is also moving into a leadership change, with Glencore executive Clint Donkin taking over as managing director and chief executive officer from next month.

Mr Colleran said the AIC team had been working on the Mount Cuthbert deal for almost four years, getting to know the Malaysian owners and earning their trust.

“Mount Cuthbert is a project that we have long coveted; it is a project that we consider to be the most prospective undeveloped copper project in the Mount Isa – Cloncurry region (and we’ve looked at a lot),” he said.

He said the transaction advanced the company’s ambition to build the next Australian mid-tier copper producer by adding a potential second production centre in North-West Queensland.

While the previous owners operated Mount Cuthbert as an oxide heap leach project, AIC is eyeing the potential for a standalone sulphide concentrator of a similar scale to the new Eloise plant.

It plans to begin resource definition drilling, exploration drilling and environmental baseline studies on the new ground after the upcoming wet season.