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 (Date of earliest event reported) June 27, 1996
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K.L.S. Enviro Resources, Inc.
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(Exact name of registrant as specified in its charter)
Nevada 33-62268 75-2460365
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
3220 North Freeway, Fort Worth, Texas 76111
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (817) 624-4844
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Item 5. Other Events
On June 27, 1996, the Registrant issued the following press release:
"FOR IMMEDIATE RELEASE CONTACT: Raymond Kurzon
(817) 624-4844
K.L.S. ENVIRO RESOURCES, INC. REPORTS OPERATING RESULTS
Ft. Worth, Texas, June 27, 1996 -- K.L.S. Enviro Resources, Inc. announced net
income of $375,000, or $.04 per share, for the three months ended March 31,
1996, and net income of $306,000, also $.04 per share, for the six months ended
March 31, 1996. The results for both periods included a one-time gain of
$380,000 from the sale of the Company's flashlight manufacturing subsidiary, and
respective losses from discontinued operations of $9,000 and $35,000
respectively. Results also included $48,000 and $99,000 for the three and six
month periods, respectively, from sales of the Company's remaining shares of
common stock of LaTeko Resources, Inc. Revenues from continuing operations were
$925,000 and $1,705,000, respectively, for the three and six month periods ended
March 31, 1996 as compared with $543,000 and $1,281,000, respectively, for the
same periods of the prior year. For the three and six month periods ended March
31, 1995, the Company previously reported losses of $360,000 and $682,000,
respectively, including gains of $90,000 and $163,000, respectively, from sales
of marketable securities.
Raymond H. Kurzon, CEO of K.L.S. Enviro Resources, Inc., stated, "We are
extremely pleased to report that from the end of April to the middle of July the
size of our fleet of drilling rigs is scheduled to increase from five to eight.
Our 6th rig, a "blast hole rig", was exported to Mexico in May. Our 7th rig has
been purchased and began drilling in June in Nevada. This rig has significantly
greater depth capacity than the balance of the fleet and will be mobilized to an
Alaskan project in July. Drilling rig No. 8 currently is under construction and
is scheduled to commence work in July."
Funding for acquisition of the 7th rig and completion of construction of
the 8th rig recently was obtained through a $710,000 loan from an unrelated
party. The loan is convertible into the Company's common stock at a conversion
rate of $.30 per share.
Mr. Kurzon also noted that the Company, while expanding its contract
drilling operations, has discontinued its participation in exploration and
development of its precious metals properties in the La Cienega area of Mexico
and the Ryan Lode project in Alaska. The Company intends to pursue other
projects for gold exploration and development as it locates opportunities and is
able to promote or otherwise finance these activities.
K.L.S. Enviro Resources, Inc. has administrative offices in Ft. Worth,
Texas, with offices for its drilling and repair service operations located in
Missoula, Montana. The Company's stock is traded over-the-counter on the NASD
Electronic Bulletin Board under the symbol "KLSE".
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SIGNATURES
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.
Dated: July 1, 1996 K.L.S. ENVIRO RESOURCES, INC.
By: /s/ Merlyn W. Dahlin
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Merlyn W. Dahlin, Vice President
