PODGORICA, Montenegro (AP) - Peter Munk, chairman of Toronto-based mining giant Barrick Gold Corp. (TSX:ABX), bought an old ship repair yard on Montenegro's Adriatic coast Saturday, which he will turn into a luxury resort.
Munk signed the agreement to buy the Arsenal repair facility with Montenegrin Prime Minister Milo Djukanovic, in the capital Podgorica.
The agreement presents the first major privatization deal for the tiny Adriatic republic since it gained independence in June.
The Canadian mining tycoon acquired the vast repair facility - originally built by the Austro-Hungarian navy in 1889 and used as a naval base by the former Yugoslavia - for 29 million euros (C$41.3 million).
Munk has said he would invest around $151 million over the next two years - including an environmental clean-up - and create a hotel complex with a yacht marina, shopping malls and other facilities.
Arsenal covers 24 hectares and is located on the Adriatic coast, 60 kilometres west of the capital Podgorica.
