Yellowknife (July 07/04) - The government's current exposure on loan guarantees with Arslanian Cutting Works Ltd. currently sits at $1 million, but that could go as high as $9.1 million.

Finance Minister Floyd Roland said the potential to go up to the $9.1 million on loan guarantees depends on inventory and receivables Arslanian has on hand.

"We'll adjust based on the inventory available we're able to secure," said Roland.

"We have agreed to help them secure their next diamond allotment. We're close to removing the interim receiver and until then we'll operate as we have," he said.

The deal that looks to be going through puts the territorial government in a much stronger position, said the finance minister.

"The deal is much stronger. It secures our position. There are better partners involved who have provided personal guarantees," said Roland.

The finance minister said he expects the final revisions to the deal will be in place over the next 30 to 60 days. The government expected to be in court to discuss lifting of the interim receiver on Tuesday. They will be in court July 14 to discuss the Sirius Diamonds issue.