U.S. Silver Corporation announced Tuesday that it's doing a reverse stock split. That means that for every five shares stockholders own, they will soon own one that's worth five.

When the market closed Tuesday, each stock was worth around 45 cents. The company saw a six-month high in early September with 72 cents, and has hovered between 40 cents and 50 cents this month.

The consolidation of shares was previously approved by the shareholders at the Annual and Special Meeting of the corporation held on June 23. It will result in the approximately 309 million current shares being reduced to approximately 62 million post-consolidation shares.

U.S. Silver will mail letters to registered stockholders as soon as Thursday, requesting that they forward their share certificates to Valiant Trust Company in Toronto in exchange for new share certificates. It is anticipated that trading of consolidated shares will commence Toronto Stock Exchange when the market opens on or around Monday.

The same media release said U.S. Silver has received clearance to apply to list the corporation's common shares on the New York Stock Exchange Amex, formerly known as the American Stock Exchange (AMEX). This indicates they've satisfied certain listing requirements, but they will need to adhere to more conditions and confirmations before being authorized to list on NYSE Amex.

A media release issued Tuesday said, "While management believes the corporation can meet such requirements, there can be no guarantee that the corporation will meet each such condition and confirmation."

Jerome Bunde, a local Pennaluna and Company investment advisor, said the company's reverse stock split is most likely to part of its attempt to trade on the NYSE Amex.

"They should apply to get onto the New York (stock exchange)," he said, "because every (mining company) for the last 100 years have been on NYSE ... they're too big for Amex."

Bunde said this is a common way for companies to get stock prices up.

Until now, the corporation has been trading with over-the-counter Pink Sheets, he said. Pink Sheets is not a stock exchange - companies do not need to fulfill any requirements, such as filing financial statements with the U.S. Securities and Exchange Commission.

"Qualified institutions ... won't mess with stocks under $5, especially on Pink Sheets," Bunde said. "That's like being on the bottom of the barrel."

Calls to U.S. Silver Tuesday were not immediately returned.