SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No. 3
American Resources of Delaware, Inc.
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(Name of Issuer)
Common Stock ($.00001 Par Value)
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(Title of Class of Securities)
02926 U 30 8
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(CUSIP No.)
Leonard K. Nave
Rick G. Avare
160 Morgan Street
Versailles, KY 40383
(606) 873-5455
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Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications
Various
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(Date of Event which requires filing of this Statement)
If the filing person has previously filed a Statement on Schedule
13G to report the acquisition which is the subject of this
Statement and is filing this Statement because of Rule 13d-1 (b)(3)
or (4), check the following box: ( )
Check the following box if a fee is being paid with this Statement:
( )
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CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Leonard K. Nave, Trustee
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
------
(b) X
------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
00
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------------
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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Number of 7. SOLE VOTING POWER
Shares None
-------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 993,623
-------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting None
-------------------------------
Person 10. SHARED DISPOSITIVE POWER
993,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Leonard K. Nave, Trustee, beneficially owns 993,623 shares of
common stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
-----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.3%
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14. TYPE OF REPORTING PERSON
IN
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CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Southern Gas Holding Company, Inc.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
61-1200618
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
------
(b) X
------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
00
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------------
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Kentucky
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Number of 7. SOLE VOTING POWER
Shares None
-------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 993,623
-------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting None
-------------------------------
Person 10. SHARED DISPOSITIVE POWER
993,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Southern Gas Holding Co. beneficially owns 993,623 shares of
common stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
-----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.3%
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14. TYPE OF REPORTING PERSON
CO
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CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Leonard K. Nave
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
###-##-####
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
------
(b) X
------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
BK, PF, OO
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------------
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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Number of 7. SOLE VOTING POWER
Shares 304,839
-------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 993,623
-------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 304,839
-------------------------------
Person 10 SHARED DISPOSITIVE POWER
993,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Leonard K. Nave beneficially owns 1,298,462 shares of common
stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.0%
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14. TYPE OF REPORTING PERSON
IN
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CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Rick G. Avare
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
###-##-####
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
------
(b) X
------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
BK,PF,OO,SC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------------
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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Number of 7. SOLE VOTING POWER
Shares 788,028
-------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 1,596,845
-------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 788,028
-------------------------------
Person 10. SHARED DISPOSITIVE POWER
1,596,845
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Rick G. Avare beneficially owns 2,384,873 shares of common
stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
-----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.0%
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14. TYPE OF REPORTING PERSON
IN
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CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Prima Capital LLC
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
61-1278562
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
------
(b) X
------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF,OO
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------------
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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Number of 7. SOLE VOTING POWER
Shares 602,088
-------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By NONE
-------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 602,088
-------------------------------
Person 10. SHARED DISPOSITIVE POWER
NONE
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Rick G. Avare beneficially owns 602,088 shares of common
stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
------------------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.2%
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14. TYPE OF REPORTING PERSON
OO
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ITEM 1. Security and Issuer.
-------------------
Not Amended.
ITEM 2. Identity and Background.
-----------------------
Item 2 is amended to add Prima Capital LLC as a Reporting
Person. Prima Capital LLC ("Prima") is a Kentucky limited liability
company. Its principal business is investing in oil and gas
properties and investments incidental thereto. During the last five
years, Prima has not been convicted in any criminal proceeding,
excluding traffic violations or similar misdemeanors, and Prima was
not a party to a civil proceeding of a judicial or administrative
body of competent jurisdiction which resulted in or subjected it to
a judgment, decree or final order enjoining future violations of,
or prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.
The address of Prima's principal business and principal office is
160 Morgan Street, Versailles, Kentucky 40383. Rick G. Avare and
four other individuals each own a 20% interest in Prima. Rick G.
Avare is the sole administrative member of Prima and has the sole
power to vote and dispose of the shares of Common Stock owned by
Prima.
ITEM 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
Item 3 is amended to add the following at the end thereof:
On June 6, 1997, Prima purchased 304,606 shares of Common
Stock in a private transaction for $1.85 per share for an aggregate
of $563,521. The purchase price was paid with funds borrowed from
David Fox, Jr. and his sons evidenced by a 120 day unsecured
promissory note bearing interest at the rate of 10% per annum.
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ITEM 4. Purpose of Transaction.
----------------------
Not amended.
ITEM 5. Interest in Securities of the Issuer.
------------------------------------
Item 5 is amended to read as follows:
(a) At June 30, 1997, 9,682,922 shares of Common Stock were
issued and outstanding. The reporting persons identified in ITEM 2
above, beneficially own the following shares of ARI Common Stock:
Reporting Person No. Shares Percent
---------------- ---------- -------
Southern Gas Holding 993,623 10.3%
Leonard K. Nave, Trustee 993,623 10.3%
Leonard K. Nave 1,298,462 13.0%
Rick G. Avare 2,384,873 23.0%
Prima Capital LLC 602,088 6.2%
(b) The reporting persons have the following sole or shared
power to vote shares of ARI Common Stock ("Voting Power") and the
sole or shared power to dispose of shares of ARI Common Stock
("Investment Power"):
Southern Gas Holding:
Sole Voting Power None
Shared Voting Power 993,623 (1)
Sole Investment Power None
Shared Investment Power 993,623 (1)
Leonard K. Nave, Trustee:
Sole Voting Power None
Shared Voting Power 993,623 (1)
Sole Investment Power None
Shared Investment Power 993,623 (1)
Leonard K. Nave
Sole Voting Power 304,839 (2)
Shared Voting Power 993,623 (1)
Sole Investment Power 304,839 (2)
Shared Investment Power 993,623 (1)
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<PAGE>
Rick G. Avare:
Sole Voting Power 788,028 (3)
Shared Voting Power 1,596,845 (4)
Sole Investment Power 788,028 (3)
Shared Investment Power 1,596,845 (4)
Prima Capital LLC:
Sole Voting Power None
Shared Voting Power 602,088 (5)
Sole Investment Power None
Shared Investment Power 602,088 (5)
Footnotes:
(1) Shares owned of record by Southern Gas Holding
Company, Inc.
(2) Shares and options to purchase shares owned of
record by Leonard K. Nave, individually.
(3) Shares, options and conversion rights owned of
record by Rick G. Avare.
(4) 993,623 shares owned of record by Southern Gas
Holding, 602,088 shares owned of record by Prima
Capital LLC, and 1,134 shares owned of record by
JJR Investments.
(5) Shares owned of record by Prima Capital LLC.
Leonard K. Nave disclaims the beneficial ownership of 60% of
the shares of Common Stock owned of record by Southern Gas Holding
Company, Inc. Rick G. Avare disclaims the beneficial ownership of
47.5% of the shares of Common Stock owned of record by Southern Gas
Holding Company, Inc. and 80% of the shares of Common Stock owned
of record by Prima Capital LLC. The filing of this Schedule 13D
shall not be construed as an admission by either Leonard K. Nave or
Rick G. Avare that such persons, for the purposes of Section 13(d)
or 13(g) of the Securities Exchange Act of 1934, as amended, is the
beneficial owner of such shares of Common Stock.
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<PAGE>
It was previously reported that Rick G. Avare, Leonard K.
Nave, Douglas Hawthorne, Andrew Kacic and Donald Schellpfeffer
jointly owned 147,482 shares of Common Stock. Effective June 18,
1997, the record ownership of the shares was transferred to all
five individuals in exchange for their personal assumption of a
proportionate percentage of the indebtedness incurred upon their
purchase, with 29,496 shares being transferred to Rick G. Avare and
29,200 shares being transferred to Leonard K. Nave. Rick G. Avare
and Leonard K. Nave each previously disclaimed the beneficial
ownership of 80% of the 147,482 jointly owned shares.
ITEM 6. Contracts, Arrangements, Understandings or Relationships
--------------------------------------------------------
With Respect to Securities of the Issuer.
- ----------------------------------------
On July 16, 1997, ARI issued and sold 500,000 shares of Common
Stock to its principal lender, Den norske Bank ASA ("Bank"). As a
condition precedent to the sale, the Bank required Rick G. Avare
and Southern Gas Holding, Inc. to enter into a Co-Sale Agreement
with the Bank under which Avare and Southern Gas Holding agreed to
purchase a formula percentage of the Common Stock purchased by the
Bank if Rick G. Avare and/or Southern Gas Holding should sell
200,000 or more shares of Common Stock in private transactions. A
copy of the Co-Sale Agreement is attached hereto as Exhibit 10.82
to ARI's Current Report on Form 8-K dated July 11, 1997, which was
previously filed with the Commission and is incorporated herein by
reference.
Except as otherwise disclosed in this Schedule 13D, none of
the reporting persons has any contracts, arrangements,
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<PAGE>
understandings or relationships among themselves or with any other
persons with respect to any securities of ARI.
ITEM 7. Material to be Filed as Exhibits.
--------------------------------
The following exhibit is attached hereto:
Exhibit 3-1 Agreement among Southern Gas Holding Company,
----------- Inc., Leonard K. Nave, individually, Leonard K.
Nave, Trustee, Rick G. Avare and Prima Capital
LLC pursuant to Rule 13d-1(f)(1)(iii).
The following exhibit is incorporated herein by reference:
Exhibit 3-2 Co-Sale Agreement entered into on July 16, 1997
----------- among Den norske Bank ASA, Rick G. Avare,
Southern Gas Holding Company, Inc. and ARI, a
copy of which was filed as Exhibit 10.82 to
ARI Current Report on Form 8-K dated July 11,
1997 which was previously filed with the
Commission.
SIGNATURE
---------
After reasonable inquiry and to the best of our knowledge
and belief, we certify that the information set forth in this
statement is true, complete and correct.
Date: July 25, 1997
/s/ Leonard K. Nave
-----------------------------------
Leonard K. Nave, Individually
/s/ Leonard K. Nave
-----------------------------------
Leonard K. Nave, Trustee
/s/ Rick G. Avare
-----------------------------------
Rick G. Avare, Individually
Southern Gas Holding Company, Inc.
By: /s/ Leonard K. Nave
--------------------------------
Leonard K. Nave
President
Prima Capital LLC
By: /s/ Rick G. Avare
--------------------------------
Rick G. Avare
Administrative Member
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<PAGE>
EXHIBIT 3-1
AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered into by and
among SOUTHERN GAS HOLDING COMPANY, INC., a Kentucky corporation
("SGH"), LEONARD K. Nave, Trustee under a Trust Agreement dated
April 30, 1990 ("Trustee"), LEONARD K. NAVE, individually ("Nave"),
Rick G. Avare, individually ("Avare"), and PRIMA CAPITAL LLC, a
Kentucky limited liability company ("Prima").
W-I-T-N-E-S-S-E-T-H:
WHEREAS, SGH, Trustee, Nave, Avare and Prima own,
beneficially, 10.3%, 10.3%, 13.0%, 23.0% and 6.2%, respectively, of
the shares of $.00001 par value common stock of American Resources
of Delaware, Inc. ("ARI"); and
WHEREAS, Rule 13d-1(f)(1)(iii) under the Securities Exchange
Act of 1934, as amended (the "Act"), requires that when a Schedule
13D is filed on behalf of more than one person, the Schedule 13D
shall include as an exhibit the agreement in writing of such
persons that the Schedule 13D is filed on behalf of each of them;
and
WHEREAS, SGH, Trustee, Nave, Avare and Prima desire to file a
single Schedule 13D with respect to their ownership of shares of
$.00001 common stock of ARI ("ARI Common Stock"),
NOW, THEREFORE, in consideration of the premises and the
mutual promises of the parties hereto, they hereby covenant and
agree as follows:
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<PAGE>
1. SGH, Trustee, Nave, Avare and Prima agree that a single
Schedule 13D and any amendments thereto relating to the shares of
$.00001 par value common stock of ARI ("ARI Common Stock") shall be
filed on behalf of each of them.
2. SGH, Trustee, Nave, Avare and Prima each acknowledge and
agree that pursuant to Rule 13d-1(f)(1) under the Act each of them
is individually responsible for the timely filing of such Schedule
13D and any amendments thereto and for the completeness and
accuracy of the information contained therein.
3. This Agreement shall not be assignable by any party
hereto.
4. This Agreement shall terminate upon the first to occur of
the following: (a) the death of Nave or Avare, (b) the dissolution
of SGH or Prima, (c) the termination of the above mentioned Trust
Agreement, or (d) the delivery of a written notice of termination
by any party hereto to all of the other parties hereto.
5. This Agreement supersedes the prior agreement entered
into among SGH, Trustee, Nave and Avare pertaining to the same
subject matter.
6. This Agreement may be executed in two or more
counterparts, all of which shall constitute a single instrument,
but each of which shall be deemed to be an original copy hereof.
EXECUTED as of the 25th day of July, 1997.
SOUTHERN GAS HOLDING COMPANY, INC.
By: /s/ Leonard K. Nave
----------------------
Leonard K. Nave
President
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<PAGE>
/s/ Leonard K. Nave
- -------------------------
Trustee
/s/ Leonard K. Nave
- -------------------------
Leonard K. Nave
Individually
/s/ Rick G. Avare
- -------------------------
Rick G. Avare
Individually
Prima Capital LLC
By:/s/ Rick G. Avare
----------------------
Rick G. Avare
Administrative
Member
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