Yellowknife (Feb 25/05) - Finance Minister Floyd Roland says a new buyer has expressed interest in purchasing the Sirius diamond polishing plant.

The factory has cost the government more than $3 million since its decision to recall a loan guarantee to its previous owner.

The GNWT almost had a deal clinched with Israeli billionaire Lev Leviev, but his group balked last month after failing to reach an agreement with producers about the amount of diamonds they would supply to the plant.

Entered into discussions

Roland won't say who Sirius receiver Deloitte and Touche is speaking to about the sale.

"I'm aware they've entered into discussions with one company at this time," said Roland. He said, however, he wasn't sure if they will be able to get the minimum $6.5 million they were originally asking for, or how much taking over the plant will wind up costing the government.

"The total number won't be clarified until we come up with a final deal of either selling the plant or shutting it down and selling off the assets," said Roland.