Algoma Mills is located between the North Channel and Lauzon Lake, near the township's western boundary with Blind River.

With the mill no longer in Cook's ownership, Spragge (the original name of the township in which it is located), was adopted as the name of the community.

Over time a small village with a school, hotel, barbershop, general store was created, and by 1926 the community had a population of about 300 people.

Sawmill activity was terminated in Spragge in the early 1930s following a disastrous fire, which eliminated the mill, lumber inventory, docks and most of the town.

The town subsequently revived with the discovery of uranium and copper deposits in the area, leading to a thriving mining industry.