Once completed, the operation will employ about 90 people directly and others indirectly.
Resolute said Thursday that a site for the mill will be chosen within weeks.
Construction is to begin this spring and completion is targeted for early next year.
The Montreal-based company, formerly called AbitibBowater, estimates the project will cost $50 million.
"We believe in our solid wood business and we're taking action to grow and improve it," Resolute president and CEO Richard Garneau said in a statement.
Besides producing lumber, the mill will also supply chips to the company's pulp and paper operations in Thunder Bay, Ont.