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<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>UNITED STATES</B></P>
<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:14pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>September 5, 2007 (August 29, 2007)</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Date of Report (Date of earliest event reported)</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>TERRA NOSTRA RESOURCES CORP.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<TABLE cellspacing=0><TR><TD style="border:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center><B>Nevada</B></P>
</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center><B>000-49631</B></P>
</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center><B>86-0875500</B></P>
</TD></TR>
<TR><TD style="border-left:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center>(State or other jurisdiction</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>of incorporation)</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center>(Commission File No.)</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=192><P style="margin:0pt; font-family:Times New Roman" align=center>(IRS Employer</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>790 East Colorado Blvd., 9<SUP>th</SUP> Floor</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Pasadena, CA 91101</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Address of principal executive offices, including zip code)</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Registrant's telephone number, including area code: <B>(626) 796-0088</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="margin:0pt; font-family:Wingdings" align=justify><I>&nbsp;</I></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Wingdings" align=justify><I>o</I></P>
<P style="margin:0pt; text-indent:36pt; font-family:Wingdings" align=justify><I></I><FONT FACE="Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Wingdings" align=justify><I>o</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Wingdings" align=justify><I>o</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Wingdings" align=justify><I>o</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; font-family:Times; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On August 29, 2007, Terra Nostra Resources Corp. (&#8220;Terra Nostra&#148; or the &#147;Company&#148;) entered into a Securities Purchase Agreement (the &#147;Purchase Agreement&#148;) with three (3) &#147;accredited investors&#148; providing for the purchase and sale of $6,895,165 of 10% Senior Secured Convertible Promissory Notes (the &#147;Note&#148;); the total amount of the Notes to be offered and sold by the Company (the &#147;Offering&#148;) is up to Twelve Million Five Hundred Thousand United States dollars (&#147;<U>Dollars</U>&#148;) ($12,500,000). The Company utilized Axiom Capital Management (&#147;Axiom&#148;) as placement agent in connection with the Offering. The principal face amount of the Notes, together with any interest thereon, convert, at the option of the Holder, into shares of the Company&#146;s Common Stock at $1.75 per share and interest is to be paid by the Company on a quarterly basis. The Maturity Date of the Note is nine (9) months from the date of issuance. Upon the closing of a Qualified Financing (as defined in the Note), the Holder shall have the option to (i) tender all or a portion of the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes (in lieu of cash) as consideration to purchase the securities issued by the Company in such Qualified Financing, or (ii) require the Company to repay all or a portion the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes. In the event that the Company closes any debt or equity financing (an &#147;<U>Other Financing</U>&#148;) prior to a Qualified Financing (as defined in the Note), the Holders of the Notes shall have the right, in their sole discretion, to tender all or a portion of the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes (in lieu of cash) together with any warrants in connection herewith as consideration to purchase the securities issued by the Company in such Other Financing. As more fully described in the Notes, the obligations of the Company under the Notes shall rank senior to all other debt of the Company, whether now or hereinafter existing.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>As collateral for the Notes, an executive officer of the Company pledged approximately 19,748,934 shares of his Common Stock to secure the Notes and is required to pledge an additional 1,282,204 shares (the &#147;Pledge Agreement&#148;). &nbsp;The Company has agreed to issue a total of 2,050,000 shares of its Common Stock and an equal number of warrants exercisable into shares of the Company&#146;s common stock at $1.75 per shares to the executive officer as compensation for entering into the Pledge Agreement. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In connection with the issuance of the Notes, the Company issued to the investors five (5) year warrants (the &#147;Warrants&#148;) to purchase an aggregate number of shares of the Company&#146;s common stock equal to eighty percent (80%) of the number of shares into which the Notes are convertible at an exercise price of $1.75 (the &#147;Exercise Price&#148;). &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company has granted certain registration rights to the investors requiring the Company to file a registration statement covering the shares of Common Stock underlying the Notes and Warrants within one hundred and eighty (180) days from the Closing Date (the &#147;Registration Rights Agreement&#148;). The Company shall use its best efforts to have any such registration statement declared effective no later than two hundred and seventy (270) days after the Closing Date.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>A copy of the Purchase Agreement, Note, Pledge Agreement, Warrants and Registration Rights Agreement are filed herewith as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5, respectively.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In connection with the Agreement, the Company paid Axiom a retainer fee of $15,000 plus eight percent (8%) of the aggregate purchase price paid by the investors in the Offering and an introduction fee of 2% in cash and 1% in warrants on the same terms as the Axiom warrants to be issued under the Axiom finders fee agreement. &nbsp;Further, the Company paid to Mirador Consulting Inc., a finder&#146;s fee equal t o120,000 shares of Common Stock.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman" align=justify><B><U>Item 2.03</U></B></P>
<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman" align=justify><B><U>Creation of a Direct Financial Obligation or an obligation Under an Off-Balance Sheet Arrangement of a Registration</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman">See Item 1.01 above.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times; font-size:12pt" align=center>2</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000"><BR></P>
<P style="margin-top:0pt; margin-bottom:-9pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000"><B>Item 3.02 </B></P>
<P style="margin:0pt; padding-bottom:3pt; text-indent:72pt; font-family:Times New Roman; border-bottom:0.5pt solid #000000"><B>Unregistered Sales of Equity Securities</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">See Item 1.01 above.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the &#147;Act&#148;) for the private placement of these securities pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the Investor is an &#147;accredited investor&#148; and/or qualified institutional buyer, the Investor has access to information about the Company and its investment, the Investor will take the securities for investment and not resale, and the Company is taking appropriate measures to restrict the transfer of the securities</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.<A NAME="fis_unidentified_table_2"></A></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Not applicable.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(b) PRO FORMA FINANCIAL INFORMATION.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Not applicable.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(c) EXHIBITS.</P>
<TABLE cellspacing=0><TR><TD valign=bottom width=71.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Exhibit</P>
<P style="margin:0pt; font-family:Times New Roman">Number</P>
</TD><TD valign=bottom width=648 colspan=3><P style="margin:0pt; font-family:Times New Roman">Description</P>
</TD></TR>
<TR><TD style="background-color:#000000" valign=top width=71.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD style="background-color:#000000" valign=top width=648 colspan=3><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#000000" valign=top width=0.533>&nbsp;</TD><TD valign=top width=72 colspan=2><P style="margin:0pt; font-family:Times New Roman">&nbsp;10.1</P>
</TD><TD valign=top width=647.4 colspan=2><P style="margin:0pt; font-family:Times New Roman">Form of Securities Purchase Agreement</P>
</TD></TR>
<TR><TD valign=top width=0.533>&nbsp;</TD><TD valign=top width=72 colspan=2><P style="margin:0pt; font-family:Times New Roman">10.2</P>
</TD><TD valign=top width=647.4 colspan=2><P style="margin:0pt; font-family:Times New Roman">Form of 10% Senior Secured Convertible Promissory Notes</P>
</TD></TR>
<TR><TD valign=top width=0.533>&nbsp;</TD><TD valign=top width=72 colspan=2><P style="margin:0pt; font-family:Times New Roman">10.3</P>
</TD><TD valign=top width=647.4 colspan=2><P style="margin:0pt; font-family:Times New Roman">Form of Pledge Agreement</P>
</TD></TR>
<TR><TD valign=top width=0.533>&nbsp;</TD><TD valign=top width=72 colspan=2><P style="margin:0pt; font-family:Times New Roman">10.4</P>
</TD><TD valign=top width=647.4 colspan=2><P style="margin:0pt; font-family:Times New Roman">Form of Warrant</P>
</TD></TR>
<TR><TD valign=top width=0.533>&nbsp;</TD><TD valign=top width=72 colspan=2><P style="margin:0pt; font-family:Times New Roman">10.5</P>
</TD><TD valign=top width=647.4 colspan=2><P style="margin:0pt; font-family:Times New Roman">Form of Registration Rights Agreement</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<TABLE cellspacing=0><TR><TD style="border:1 solid #000000" valign=top width=334.533>&nbsp;</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=21.467>&nbsp;</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=35.733>&nbsp;</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=7.133>&nbsp;</TD><TD style="border-top:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=320.933><P style="margin:0pt; font-family:Times New Roman">TERRA NOSTRA RESOURCES CORP.</P>
</TD></TR>
<TR><TD style="border-left:1 solid #000000; border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=334.533><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=21.467><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=35.733><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">By:</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=7.133><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD style="border-right:1 solid #000000; border-bottom:1 solid #000000" valign=top width=320.933><P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>/s/ </U><I><U>Sun Liu James Po</U></I><U> </U></P>
<P style="margin:0pt; font-family:Times New Roman">Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">September 4, 2007</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><BR></P>
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<P style="margin:0pt; font-family:Times New Roman" align=center><B></B></P>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
September 5, 2007 (August 29, 2007)
Date of Report (Date of earliest event reported)
TERRA NOSTRA RESOURCES CORP.
(Exact name of registrant as specified in its charter)
Nevada
000-49631
86-0875500
(State or other jurisdiction
of incorporation)
(Commission File No.)
(IRS Employer
Identification No.)
790 East Colorado Blvd., 9
th
Floor
Pasadena, CA 91101
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(626) 796-0088
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On August 29, 2007, Terra Nostra Resources Corp. ("Terra Nostra" or the "Company") entered into a Securities Purchase Agreement (the "Purchase Agreement") with three (3) "accredited investors" providing for the purchase and sale of $6,895,165 of 10% Senior Secured Convertible Promissory Notes (the "Note"); the total amount of the Notes to be offered and sold by the Company (the "Offering") is up to Twelve Million Five Hundred Thousand United States dollars ("
Dollars
") ($12,500,000). The Company utilized Axiom Capital Management ("Axiom") as placement agent in connection with the Offering. The principal face amount of the Notes, together with any interest thereon, convert, at the option of the Holder, into shares of the Company's Common Stock at $1.75 per share and interest is to be paid by the Company on a quarterly basis. The Maturity Date of the Note is nine (9) months from the date of issuance. Upon the closing of a Qualified Financing (as defined in the Note), the Holder shall have the option to (i) tender all or a portion of the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes (in lieu of cash) as consideration to purchase the securities issued by the Company in such Qualified Financing, or (ii) require the Company to repay all or a portion the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes. In the event that the Company closes any debt or equity financing (an "
Other Financing
") prior to a Qualified Financing (as defined in the Note), the Holders of the Notes shall have the right, in their sole discretion, to tender all or a portion of the outstanding principal balance plus accrued and unpaid interest (including Default Interest, if any) on the Notes (in lieu of cash) together with any warrants in connection herewith as consideration to purchase the securities issued by the Company in such Other Financing. As more fully described in the Notes, the obligations of the Company under the Notes shall rank senior to all other debt of the Company, whether now or hereinafter existing.
As collateral for the Notes, an executive officer of the Company pledged approximately 19,748,934 shares of his Common Stock to secure the Notes and is required to pledge an additional 1,282,204 shares (the "Pledge Agreement").  The Company has agreed to issue a total of 2,050,000 shares of its Common Stock and an equal number of warrants exercisable into shares of the Company's common stock at $1.75 per shares to the executive officer as compensation for entering into the Pledge Agreement.
In connection with the issuance of the Notes, the Company issued to the investors five (5) year warrants (the "Warrants") to purchase an aggregate number of shares of the Company's common stock equal to eighty percent (80%) of the number of shares into which the Notes are convertible at an exercise price of $1.75 (the "Exercise Price").
The Company has granted certain registration rights to the investors requiring the Company to file a registration statement covering the shares of Common Stock underlying the Notes and Warrants within one hundred and eighty (180) days from the Closing Date (the "Registration Rights Agreement"). The Company shall use its best efforts to have any such registration statement declared effective no later than two hundred and seventy (270) days after the Closing Date.
A copy of the Purchase Agreement, Note, Pledge Agreement, Warrants and Registration Rights Agreement are filed herewith as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5, respectively.
In connection with the Agreement, the Company paid Axiom a retainer fee of $15,000 plus eight percent (8%) of the aggregate purchase price paid by the investors in the Offering and an introduction fee of 2% in cash and 1% in warrants on the same terms as the Axiom warrants to be issued under the Axiom finders fee agreement.  Further, the Company paid to Mirador Consulting Inc., a finder's fee equal t o120,000 shares of Common Stock.
Item 2.03
Creation of a Direct Financial Obligation or an obligation Under an Off-Balance Sheet Arrangement of a Registration
See Item 1.01 above.
2
Item 3.02
Unregistered Sales of Equity Securities
See Item 1.01 above.
The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act") for the private placement of these securities pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the Investor is an "accredited investor" and/or qualified institutional buyer, the Investor has access to information about the Company and its investment, the Investor will take the securities for investment and not resale, and the Company is taking appropriate measures to restrict the transfer of the securities
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED.
Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.
Exhibit
Number
Description
10.1
Form of Securities Purchase Agreement
10.2
Form of 10% Senior Secured Convertible Promissory Notes
10.3
Form of Pledge Agreement
10.4
Form of Warrant
10.5
Form of Registration Rights Agreement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.
TERRA NOSTRA RESOURCES CORP.
By:
/s/
Sun Liu James Po
Chief Executive Officer
September 4, 2007