** Shares of Ionic Rare Earths fall as much as 22.2% to A$0.007, posting their biggest intraday percentage decline since Aug. 13

** Stock hits its lowest level since Sept. 27

** Rare earths explorer says it will raise A$1.7 mln ($1.10 mln) via placement at A$0.007 per share

** Issue price represents a 22.2% discount on co's last close

** About 26.7 mln shares change hands, compared with the 30-day average volume of around 3.4 mln

** Stock down 73.1% YTD, including session's move

($1 = 1.5497 Australian dollars)

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com))