** Shares of Blaze Minerals BLZ.AX fall as much as 28.6% to A$0.005, posting their biggest intraday percentage decline since Aug. 28

** Gold explorer says it will raise A$1.3 million ($835,380.00) via placement at A$0.004 per share

** Issue price represents a 42.9% discount to co's last close

** About 2.2 mln shares change hands, compared with the 30-day average volume of around 1.1 mln

** Stock down 12.5% YTD, as of last close

($1 = 1.5562 Australian dollars)

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com))