** Shares of Australian Strategic Materials rise as much as 6.6% to A$0.645, their highest since Sept. 30

** Critical metals producer says it has been awarded A$5 mln ($3.36 mln) under the Australian Federal Government's International Partnerships in Critical Minerals Program

** Says grant for identifying lower capital & shorter implementation pathways to rare earth production at Dubbo project in New South Wales

** As of last close, stock down 52.4% YTD

($1 = 1.4868 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))