Target described the investment as taking the form of five-year subordinated debt that is to be executed in conjunction with an exclusive marketing agreement whereby Tiffany will have right of first refusal on Target`s output at market price and will then sell the diamonds not used.
James Fernandez, the chief financial officer of Tiffany, said, "This investment in Target is consistent with our policy of selectively investing in diamond miners who ethically mine high quality stones."
Sierra Leone, which just this past weekend elected a new president, is a well-known source of high quality rough stones and Target`s production to date has been encouraging, Fernandez explained.
"We have followed Target for some time and are impressed by its evident commitment to high corporate social responsibility and environmental standards. We look forward to developing the relationship further," Fernandez concluded.
Freddy Hager, chairman of Target, said, "We are delighted to receive this vote of confidence both in the quality of our stones and in the way we mine them from what is arguably the world`s most prestigious diamond retailer."