FedNor Error Fuels Musselwhite Gold Mine Sale Confusion

A recent federal government backgrounder sparked investor uncertainty about the future of the Musselwhite gold mine in Northern Ontario after incorrectly suggesting that Shibogama First Nations Council was evaluating a potential purchase.

The Musselwhite mine, situated approximately 500 kilometres north of Thunder Bay, Ontario, has produced around six million ounces of gold since starting operations in 1997. Vancouver-based Orla Mining Ltd. acquired the asset from Newmont Corp. for about $850 million in November 2024, with the deal closing in March 2025. Orla plans to invest more than US$400 million to sustain and expand production.

Details of the Misleading Publication

In December, the Federal Economic Development Agency for Northern Ontario (FedNor) announced $400,000 in funding to Shibogama First Nations Council as part of a $4.7-million package supporting 10 Indigenous economic development initiatives. The backgrounder accompanying the release stated that the funds supported a two-phase business analysis “part of the due diligence being done regarding the potential purchase of Musselwhite Mine.”

This claim drew media coverage, including a media event by FedNor Minister Patty Hajdu, and fueled speculation despite Orla’s recent ownership and long-term commitment to the site.

Orla Mining Clarifies Ownership Intentions

Jason Simpson, chief executive officer of Orla Mining, emphasized the company’s dedication to the mine. “Orla acquired the Musselwhite mine in March 2025 because we believed in and wanted to invest in the future growth and potential of the mine,” Simpson stated. “We are not looking to sell the mine.”

Orla officials confirmed they were unaware of the FedNor release and its wording prior to publication.

Shibogama’s Past Interest

Shibogama First Nations Council, based in Sioux Lookout, Ontario, and representing Kasabonika Lake First Nation, Kingfisher Lake First Nation, Wapekeka First Nation, Wawakapewin First Nation, and Wunnumin Lake First Nation, once explored acquiring the mine. Robert Popovic, Shibogama’s technical services director, noted that the council considered a bid in 2024 during Newmont’s sale process. “Based on the review of the documents provided, and the very short timeline to provide a proposal, we opted not to proceed any further with the business analysis and review,” Popovic explained.

FedNor communications director Justin Lemieux indicated that the original backgrounder reflected information from Shibogama’s initial funding application.

Government’s Quiet Correction

Authorities later revised the online backgrounder without a public news release. The updated version shifts to past tense and removes the specific reference to Musselwhite: “The funding awarded provided Shibogama First Nations Council with the capacity to conduct a two-phase business analysis. This work supported the Council’s due diligence process, assessed feasibility, and explored economic opportunities related to the potential acquisition of a mining project.”

Lemieux stated that the changes better reflect the project’s current status and that no further public clarification is necessary. Hajdu’s office did not respond to requests for comment.