(KLZA)-- Export-Import Bank Chairman John Jovanovic said during a tour of the Elk Creek mine property that a proposed $840 million loan to help finance the Elk Creek Critical Minerals Project near Elk Creek in Johnson County is in the final stages of confirmatory due diligence and is expected to be finalized in short order, but said there is no guarantee it will be approved.

The mine when opened, will be a key step toward producing material used in U.S. Military equipment and defense manufacturing.

The mine will produce eight materials, including niobium, an allowing agent used to strengthen steel, none of which is currently produced in the United States.

U.S. Energy Secretary Chris Wright said the project is supported by President Donald Trump who wants the country less reliant on Chinese materials for critical defense infrastructure.

A day before the gathering of state and federal officials at the mine site, NioCorp announced a partnership with Traxys North America LLC, a materials trader. Under the agreement, Traxys will purchase, on a take-or-pay basis, 50% of NioCorp's planned ferroniobium production for 15 years.
NioCorp also has a deal in place the ThyssenKrupp Metallurgical Products, another materials trader, for the other 50% over the next 10 years.