Diamondhead Casino Corporation and Trump Entertainment Resorts announced extending the terms of a letter of intent signed to October 23, 2006. The two companies are planning to collaborate for the purpose of developing, constructing, owning and managing a casino resort in Diamondhead, Mississippi.

The Diamondhead, Mississippi project would be located on at least forty acres within a 404 acre area in Hancock County. According to a new law, following Hurricane Katrina, casinos can be built on land up to 800 feet from the mean high water line of certain bodies of water. Diamondhead Casino and Trump Entertainment Resorts have completed substantial due diligence including engineering surveys and studies. They are still required to complete the necessary legal and due diligence.

Trump Entertainment Resorts is one of the top gaming companies in the market. It owns and operates three properties in Atlantic City: the Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. Each of Trump Entertainment properties has about 3,000 hotel rooms.

Diamondhead Casino Corporation owns and plans to develop and operate through its subsidiary, Mississippi Gaming Corporation in collaboration with Trump Entertainment Resorts. The Diamondhead project is planned to be as a destination casino resort and hotel.