SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8K CURRENT REPORT Date of Report: July 15, 1998 Commission File No. 0-15543 METAL RECOVERY TECHNOLOGIES INC. (Exact name of Registrant as specified in its charter) Delaware 71-0628061 (State of incorporation) (I.R.S. Employee Identification No.) 415 East 151st Street East Chicago, Indiana 46312 (Address of principle executive office) (Zip Code) Registrant's telephone number, including area code: (219) 397-6261 Item 5. Other Events Cancellation of Performance Shares and Convertible Redeemable Performance Shares The Company has reached an agreement with the holders of the performance shares and the CRPS issued at the time of the company acquisition of MRI(US), Inc. (See attached extract from the Company's for 10K filing and reference to the Company's 8K filing dated June 14, 1995.) The agreed terms are as follows: Compensation for surrendering 14,000,000 performance shares - $0.00. Compensation for surrendering $25,000,000 of CRPS - 20,000,000 common shares of the Corporations common stock to be issued under Reg S of the SEC. Signed /s/ Roy Pearce Company Secretary