Minago mining project under review with First Nation seeking funding options

A MULTI-MILLION-DOLLAR mining project in northern Manitoba is under review as its First Nation owner undergoes mass restructuring.

“All options are on the table” for the Minago Critical Minerals Project, said Blake Russell, senior adviser to Norway House Cree Nation’s chief.

The First Nation, north of Lake Winnipeg, had a leadership change following a May election. Chief Season Roulette pledged that all the nation’s programs would be reviewed to ensure they’re in-budget and providing value.

Norway House bought the Minago project for $10 million in 2024. The mining venture spans a swath of land along Highway 6, south of Ponton and north of Grand Rapids.

Project leads have touted the strip as a boon for platinum group metals, including magnesium.

In March, the Manitoba government announced $2 million for eventual development of a magnesium processing facility. It pointed to Minago’s plans.

With the leadership change, there will likely be a Minago board shakeup. It’s to reflect “skills-based governance,” Russell said.

Norway House is working with Pitblado Law to find people with mining backgrounds, he added.

Beyond that, Minago may seek new partnerships or investments for the mine. When asked if leadership would sell the project, Russell said “all options are on the table.”

“It’s up to chief and council and the community,” he said of future directions. “We’re at the very early stage of review.”

Norway House is aiming for “sustainability,” Russell added.

The First Nation is embroiled in a legal fight with HLL Consulting, its former financial consultant.

Norway House filed a lawsuit against the private Manitoba company in May. It alleges HLL Consulting overstepped its contractual role and charged exorbitant fees, sinking the First Nation into major debt.

Norway House holds more than $130 million in debt, a June public report from Roulette says. She claims HLL Consulting fees consumed roughly 20 per cent of the First Nation’s expenditures while engaged.

According to a May 25 statement of claim, HLL’s billings to Norway House increased to $12.5 million in 2024-25 from $473,000 in 2018-19, when the contract began.

The change came in tandem with HLL Consulting’s increased role in the First Nation. HLL went beyond the initial intent of financial consulting services by outsourcing core government functions, such as IT, into HLL-controlled entities, Norway House alleges.

“That expansion was not authorized by informed, transparent and properly documented Chief and Council consideration,” the statement of claim says.

HLL Consulting denied the allegations in a statement of defence. Its role evolved with approval from council over time, it says, as the First Nation grew and needed more supports. In 2018, Norway House was under co-management and external financial oversight. It was experiencing “significant financial, operational and governance difficulties,” the statement of defence says.

Michael Ly, the firm’s partner, pointed to Norway House’s net debt in 2025 and 2018: financial statements show the debt shrunk to $60.8 million from $62.5 million. Deloitte and Grant Thornton audited the statements. (The net debt was $82.9 million in 2024, the year Norway House bought the Minago project.)

“Everything HLL did was at the request or direction, or with the approval of, chief and council or the various governing structures out there,” said Jason Harvey, the lawyer representing HLL Consulting.

The firm laid off at least 60 people after Norway House axed its services in May, Ly said. HLL is seeking an $11.6 million termination payment.

The First Nation is now working with Baker Tilly, an accounting firm, to ensure it has “full oversight” of its finances, according to Roulette’s report.

Baker Tilly is conducting a forensic accounting review.

The Minago project is separate from Norway House’s operations and is able to proceed without any impacts, Russell said.

Lawyers for both Norway House and HLL Consulting said there was no direct connection between the Minago project and the ongoing court case. Ly said he has no ties to the mine.

Still, money is top of mind for Norway House: “Any future development of the mine will not come from Norway House itself, because Norway House has to provide programs and services to its members,” Russell said.

“Minago will go out and look to access resources to advance the project.”

The First Nation is meeting with federal and provincial officials about the project’s next phases, Russell said. Nothing is delaying the project, he added.

Jim Rondeau, a former MLA who’s helped lead the Minago project, said the venture could be an economic driver for decades in Norway House, adding the land is “well worth” more than what the First Nation paid.

The Minago project encompasses 94 mineral claims and two mining leases. It requires a third-party feasibility study, project leads said.

gabrielle.piche@winnipegfreepress.com