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) August 16, 1996



                          K.L.S. Enviro Resources, Inc.
             (Exact name of registrant as specified in its charter)



       Nevada                       33-62268                  75-2460365
(State or other jurisdiction   (Commission File             (IRS Employer
   of incorporation)                 Number)              Identification No.)



    3220 North Freeway, Fort Worth, Texas                      76111
   --------------------------------------------------------------------
   (Address of principal executive offices)                 (Zip Code)



        Registrant's telephone number, including area code (817) 624-4844



<PAGE>

Item 1.  Changes in Control of Registrant

         On August 16, 1996, SMD, L.L.C.  (the "Purchaser")  acquired  2,561,000
         shares of the Registrant's common stock together with 100,000 shares of
         the Registrant's  Series A preferred stock that are convertible into an
         additional  500,000  shares  of  the  Registrant's  common  stock.  The
         securities  were  acquired  from the Estate Of James  Robert  Bell (the
         "Estate") for a purchase  price of $.48 per share  (including  $.48 per
         share of common stock into which the preferred  stock is  convertible),
         with the purchase  price payable in four  installments  on February 16,
         1997,  August 16,  1997,  February  16, 1998 and August 16,  1998.  The
         Purchaser  is owned  and  controlled  by Thomas  A.  Murdock,  Roger D.
         Dudley, and Stephen M. Studdert, each of whom is a director,  executive
         officer  and  shareholder  of fonix  Corporation  ("Fonix").  Thomas A.
         Murdock became a director of the Registrant on July 10, 1996.

         As part of the same  transaction,  and on the same terms and conditions
         as those  agreed to between the  Purchaser  and the Estate,  Raymond H.
         Kurzon  acquired one million  shares of the  Registrant's  common stock
         from the  Estate.  Mr.  Kurzon  is  Chairman  Of The  Board  and  Chief
         Executive  Officer of the Registrant.  As a result of this transaction,
         he owns 1,730,539  shares, or 16.7 percent,  of the outstanding  common
         stock of the  Registrant.  The  Registrant  and Mr.  Kurzon  previously
         agreed that Mr. Kurzon will convert $180,000 of the  Registrant's  debt
         owed to Mr.  Kurzon  into  450,000  shares of the  Registrant's  common
         stock.  Upon  consummation  of that  conversion,  Mr.  Kurzon  will own
         2,180,539 shares, or 20.2 percent of the Company's  outstanding  common
         stock.

         As of May 14, 1996,  the Registrant had a note payable in the amount of
         $710,000  payable  to  fonix  Corporation.  On  August  16,  1996,  the
         Registrant and fonix Corporation  modified their financing  arrangement
         pursuant  to which the  $710,000  note was  cancelled  and  replaced by
         another  $710,000 note, and the  Registrant  executed three  additional
         notes payable to fonix Corporation in the amounts of $450,000, $150,000
         and  $590,000  for  funds   previously   advanced,   for  an  aggregate
         indebtedness to fonix Corporation of $1,900,000. All of these notes are
         payable on demand,  bear  interest  at the rate of 12 percent per annum
         from the  respective  dates on which the funds were  advanced,  and are
         secured by all the Registrant's assets except for certain real property
         owned by the  Registrant.  The $710,000  note to fonix  Corporation  is
         convertible at the option of fonix Corporation into 2,366,667 shares of
         the  Registrant's  common stock at $0.30 per share, and the other notes
         are convertible  into an aggregate of 2,975,000  shares of common stock
         at $0.40 per share. The proceeds of these promissory notes were used to
         purchase two additional drilling rigs, to refurbish an existing rig, to
         purchase  additional  inventory  and  equipment  for  the  Registrant's
         drilling and hydraulics  business,  and to pay certain  indebtedness of
         the Registrant,  including  certain  accounts payable and $443,000 of a
         $623,000 note payable to the Estate of James Robert Bell, in return for
         which the Estate  released the Registrant from an obligation to pay the
         Estate $241,688 in accrued interest and preferred stock dividends. This
         transaction  with the Estate was  consummated  on August 16, 1996.  The
         other  $180,000  of the  $623,000  note  payable to the Estate of James
         Robert Bell was  transferred  by the Estate to Raymond H.  Kurzon,  the
         Chief Executive  Officer and a director of the Registrant,  in exchange
         for a real estate limited  partnership  interest assigned by Mr. Kurzon
         to the Estate.  The Registrant's Board Of Directors and Mr. Kurzon have
         agreed that the  Registrant  will retire this  $180,000 debt by issuing
         450,000  shares of its common stock to Mr.  Kurzon at the rate of $0.40
         per share.



<PAGE>

         As a result of these  transactions,  the  Purchaser  beneficially  owns
         3,061,000 shares, or 28.2 percent,  of the outstanding  common stock of
         the Registrant;  and Fonix has the right to acquire, through conversion
         of  its  notes  payable  from  the  Registrant,  5,341,667  shares,  or
         beneficial  interest of 34.0 percent, of the Registrant's common stock.
         The owners of the Purchaser disclaim beneficial ownership of any of the
         Registrant's  securities  owned by Fonix.  Fonix  disclaims  beneficial
         ownership  of any  securities  of  Registrant  owned by the  Purchaser.
         However,  based on the relationship of the owners of the Purchaser with
         Fonix,  the  Purchaser  and Fonix  may be  deemed to be the  beneficial
         owners of an  aggregate  of 51.9  percent  of the  Registrant's  common
         stock.



<PAGE>
                                   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:  August 30, 1996                   K.L.S. ENVIRO RESOURCES, INC.



                                          By:   /s/ Merlyn W. Dahlin
                                          ----------------------------
                                             Merlyn W. Dahlin, Vice President
[{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 6991}]
{"company-data": {"conformed-name": "KLS ENVIRO RESOURCES INC", "cik": "0000894988", "assigned-sic": "1090", "irs-number": "752460365", "state-of-incorporation": "NV", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-24152", "film-number": "96625496"}, "business-address": {"street1": "3220 NORTH FREEWAY", "street2": "SUITE 105", "city": "FORT WORTH", "state": "TX", "zip": "76111", "phone": "8176244844"}, "former-company": {"former-conformed-name": "KLS GOLD MINING CO", "date-changed": "19930506"}}
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) August 16, 1996

                          K.L.S. Enviro Resources, Inc.
             (Exact name of registrant as specified in its charter)

       Nevada                       33-62268                  75-2460365
(State or other jurisdiction   (Commission File             (IRS Employer
   of incorporation)                 Number)              Identification No.)

    3220 North Freeway, Fort Worth, Texas                      76111
   --------------------------------------------------------------------
   (Address of principal executive offices)                 (Zip Code)

        Registrant's telephone number, including area code (817) 624-4844
Item 1.  Changes in Control of Registrant

         On August 16, 1996, SMD, L.L.C.  (the "Purchaser")  acquired  2,561,000
         shares of the Registrant's common stock together with 100,000 shares of
         the Registrant's  Series A preferred stock that are convertible into an
         additional  500,000  shares  of  the  Registrant's  common  stock.  The
         securities  were  acquired  from the Estate Of James  Robert  Bell (the
         "Estate") for a purchase  price of $.48 per share  (including  $.48 per
         share of common stock into which the preferred  stock is  convertible),
         with the purchase  price payable in four  installments  on February 16,
         1997,  August 16,  1997,  February  16, 1998 and August 16,  1998.  The
         Purchaser  is owned  and  controlled  by Thomas  A.  Murdock,  Roger D.
         Dudley, and Stephen M. Studdert, each of whom is a director,  executive
         officer  and  shareholder  of fonix  Corporation  ("Fonix").  Thomas A.
         Murdock became a director of the Registrant on July 10, 1996.

         As part of the same  transaction,  and on the same terms and conditions
         as those  agreed to between the  Purchaser  and the Estate,  Raymond H.
         Kurzon  acquired one million  shares of the  Registrant's  common stock
         from the  Estate.  Mr.  Kurzon  is  Chairman  Of The  Board  and  Chief
         Executive  Officer of the Registrant.  As a result of this transaction,
         he owns 1,730,539  shares, or 16.7 percent,  of the outstanding  common
         stock of the  Registrant.  The  Registrant  and Mr.  Kurzon  previously
         agreed that Mr. Kurzon will convert $180,000 of the  Registrant's  debt
         owed to Mr.  Kurzon  into  450,000  shares of the  Registrant's  common
         stock.  Upon  consummation  of that  conversion,  Mr.  Kurzon  will own
         2,180,539 shares, or 20.2 percent of the Company's  outstanding  common
         stock.

         As of May 14, 1996,  the Registrant had a note payable in the amount of
         $710,000  payable  to  fonix  Corporation.  On  August  16,  1996,  the
         Registrant and fonix Corporation  modified their financing  arrangement
         pursuant  to which the  $710,000  note was  cancelled  and  replaced by
         another  $710,000 note, and the  Registrant  executed three  additional
         notes payable to fonix Corporation in the amounts of $450,000, $150,000
         and  $590,000  for  funds   previously   advanced,   for  an  aggregate
         indebtedness to fonix Corporation of $1,900,000. All of these notes are
         payable on demand,  bear  interest  at the rate of 12 percent per annum
         from the  respective  dates on which the funds were  advanced,  and are
         secured by all the Registrant's assets except for certain real property
         owned by the  Registrant.  The $710,000  note to fonix  Corporation  is
         convertible at the option of fonix Corporation into 2,366,667 shares of
         the  Registrant's  common stock at $0.30 per share, and the other notes
         are convertible  into an aggregate of 2,975,000  shares of common stock
         at $0.40 per share. The proceeds of these promissory notes were used to
         purchase two additional drilling rigs, to refurbish an existing rig, to
         purchase  additional  inventory  and  equipment  for  the  Registrant's
         drilling and hydraulics  business,  and to pay certain  indebtedness of
         the Registrant,  including  certain  accounts payable and $443,000 of a
         $623,000 note payable to the Estate of James Robert Bell, in return for
         which the Estate  released the Registrant from an obligation to pay the
         Estate $241,688 in accrued interest and preferred stock dividends. This
         transaction  with the Estate was  consummated  on August 16, 1996.  The
         other  $180,000  of the  $623,000  note  payable to the Estate of James
         Robert Bell was  transferred  by the Estate to Raymond H.  Kurzon,  the
         Chief Executive  Officer and a director of the Registrant,  in exchange
         for a real estate limited  partnership  interest assigned by Mr. Kurzon
         to the Estate.  The Registrant's Board Of Directors and Mr. Kurzon have
         agreed that the  Registrant  will retire this  $180,000 debt by issuing
         450,000  shares of its common stock to Mr.  Kurzon at the rate of $0.40
         per share.
As a result of these  transactions,  the  Purchaser  beneficially  owns
         3,061,000 shares, or 28.2 percent,  of the outstanding  common stock of
         the Registrant;  and Fonix has the right to acquire, through conversion
         of  its  notes  payable  from  the  Registrant,  5,341,667  shares,  or
         beneficial  interest of 34.0 percent, of the Registrant's common stock.
         The owners of the Purchaser disclaim beneficial ownership of any of the
         Registrant's  securities  owned by Fonix.  Fonix  disclaims  beneficial
         ownership  of any  securities  of  Registrant  owned by the  Purchaser.
         However,  based on the relationship of the owners of the Purchaser with
         Fonix,  the  Purchaser  and Fonix  may be  deemed to be the  beneficial
         owners of an  aggregate  of 51.9  percent  of the  Registrant's  common
         stock.
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:  August 30, 1996                   K.L.S. ENVIRO RESOURCES, INC.

                                          By:   /s/ Merlyn W. Dahlin
                                          ----------------------------
                                             Merlyn W. Dahlin, Vice President