The Wahgoshig First Nation, in northern Ontario, has announced plans to begin production of medical cannabis.

The First Nations group will partner with company DelShen Therapeutics to produce marijuana in an unused forestry operation in a venture expected to cost $18-million

Wahgoshig chief David Babin said the medical cannabis grow operation will greatly benefit his community of slightly over 200 people.

“This investment exceeds all of our long-term sustainable economic development criteria,” said Babin.

The project is estimated to create up to 100 jobs once full operational, with the Wahgoshig First Nations group first in line for the opportunity to work there.

The nearby town of Kirkland Lake will also benefit from the project, said mayor Tony Antoniazzi.

“Delshen Therapeutics set up operations in a rural area because it suited their business plan,” said Antoniazzi. “That is a real boom to the small and medium sized enterprises in Kirkland Lake as it creates market diversity and supports local employment.”

Other Canadian First Nations groups have also announced plans to grow medical cannabis. The Penticton Indian Band, in 2014, and the Tobique First Nation, in 2013, both released plans that they were working on medical cannabis facilities.

DelShen Therapeutics said the project is still awaiting a production license from Health Canada before the project can begin.