Trump Entertainment Resorts

(TRMP)

and Diamondhead Casino have signed a letter of intent to form a joint venture that would develop, build and operate a casino resort in Diamondhead, Miss.

The joint venture would cover at least 40 acres within a 404-acre tract of land owned by Mississippi Gaming, a unit of Diamondhead.

"As we renovate and rebrand our Atlantic City properties, we are also focused on our corporate development initiatives and expanding the Trump brand into new markets," James Perry, president and CEO of Trump Entertainment, said in a statement Monday. "We are excited about the prospect of bringing the Trump brand to the Gulf Coast, and we hope to join private and public entities in redeveloping the region."

The project will require regulatory clearance and other approvals and permits.

Trump Entertainment owns and operates three properties in Atlantic City, N.J., that have around 371,300 square feet of gambling space and 3,180 hotel rooms and suites. Donald Trump is the company's chairman and largest stockholder, but Trump Entertainment is separate from his real estate and other holdings.

Shares of Trump Entertainment were down 12 cents at $20.80.