** Shares of Morella Corporation 1MC.AX fall 6.5% to A$0.029, set for their worst trading session since Nov. 15, if current trends hold

** Mineral explorer receives firm commitments to raise A$1.4 mln ($890,960.00) via a placement

** Placement issue price at A$0.026 per share, representing a 16.1% discount to stock's last close

** Says funds will be used for exploration activities across projects in Western Australia and Nevada, U.S.

** Stock down 78.9% so far this year, including current session's moves

($1 = 1.5713 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))