Diamcor Mining has signed a long-term strategic alliance and financing deal with diamond jewelry retailer Tiffany & Co, the companies reported this week.

Under the terms of the deal, Tiffany loaned Diamcor $5.5 million for five years, which will enable Diamcor to begin work on the infrastructure needed to launch diamond mining operations at the Krone-Endora project in South Africa, which it recently acquired from De Beers.

In conjunction with its diamond sourcing and polishing subsidiary, Laurelton Diamonds, Tiffany will have the first right of refusal for 100% of the rough diamonds produced at Krone-Endora.

Tiffany will have access to the rough product at fair market value prices, which will be adjusted in accordance with market conditions.

Diamcor is "very pleased" with the deal and is looking forward to a "long and mutually beneficial relationship with Tiffany & Co," said Diamcor President and CEO Dean H. Taylor. Taylor noted that Diamcor was one of the few diamond mining companies in the world with the potential to begin new production in the near term at a time when both demand and prices for rough diamonds were rising.