SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
__________________
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: April 12, 1996
NOVA NATURAL RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 0-15078 84-1227328
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
789 Sherman St.,Suite 550,Denver,Colorado 80203
(Address of principal executive offices) (Zip Code)
(303)863-1997
(Registrant's telephone number, including area code)
ITEM 5. Other Events
Nova Natural Resources Corporation (the "Registrant") recently
completed an offering pursuant to Regulation D under the Securities
Act of 1933, as amended, and pertinent state securities laws,
principally for the purpose of funding operations to recover placer
gold and related minerals on certain State of Alaska off-shore
mining leases held by Nova and located near Nome, Alaska. As of
April 15, 1996, the Registrant had received offering proceeds
aggregating $350,000 from the sale of 35 Units at $10,000 per Unit.
Each Unit was composed by one membership interest in an Idaho
limited liability company known as NovaChek Limited Liability
Company ("NovaChek") and a convertible debenture issued by the
Registrant. The purchase price of each Unit was allocated at $3750
for each NovaChek interest and $6250 for each debenture. Each
debenture provides for interest payments at an annual rate of 10%
of the face amount, payable semi-annually; may be converted into
the Registrant's common stock at the rate of one share of stock for
each $.15 of principal; may be redeemed by the Registrant after
March 31, 1998; and is due on April 1, 21.
NovaChek will be managed by the Registrant and Chek
Technologies & Exploration, LLC, a Nevada limited liability company
("Chek"). The Registrant will be the administrative manager of
NovaChek with responsibility for all day-to-day responsibilities
not entailing mining activities. Chek will be NovaChek's field
operations manager with responsibility for supervising the mining
activity and related matters. Chek will receive no compensation
for its services as manager, but will be compensated under a
separate contractor's agreement with NovaChek. The Registrant will
be paid a manager's fee of $65,000 in the first year, $75,000 in
the second and third years, and $55,000 per year thereafter.
The Registrant will own a 42% voting percentage in NovaChek
for its contribution of the property on which operations will be
conducted and $150,000 which will be funded from proceeds of its
sale of debentures. For providing its technology and proprietary
data, Chek will receive a 36% voting interest and also will receive
5 Units for its labor in constructing the mining equipment.
NovaChek's mining will be conducted through the use of a
specially constructed barge. Divers will operate a hose which is
attached to the barge and which will selectively mine gold-bearing
sand and gravel from the top three feet of the sea floor. A barge-
mounted concentrator will pass the sand and gravel through a double
screen trommel to separate the materials and, ultimately, recover
gold.
Prior to the Registrant's acquisition of the leases on which
NovaChek's operations will be conducted, several large mineral
companies had conducted exploration and development activities on
those properties. Beginning in 1962, Shell Oil Company initiated
the first significant exploration to locate minable placers
offshore Nome, Alaska. Shell drilled over 50 test holes which it
believed indicated the presence of gold on those properties.
Between 1965 and 1967, other entities conducted similar
exploration. In 1968, Shell transferred Nome operations to ASARCO,
which drilled an additional 500 test holes. In 1984, the
Registrant acquired ASARCO's lease block and, in 1985, entered into
an agreement with Inspiration Mines, Inc. to develop the
properties. In the next several years, Inspiration and an
affiliated partnership dredged the properties and produced 121,
ounces of gold from the Registrant's leases. Inspiration's failure
to obtain profitable operations caused it to return its rights
under the leases to Registrant in 1991.
Having obtained offering proceeds in excess of the $250,000
offering minimum, the Registrant released the funds from an escrow
fund established for the offering and commenced operations of
NovaChek. An additional five Units remain to be sold in the
offering.
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
NOVA NATURAL RESOURCES CORPORATION
(Registrant)
By:/s/ Brian B. Spillane
Brian B. Spillane, President
By:/s/ Milton O. Childers
Milton O. Childers, Assistant Secretary
