** Shares of Reedy Lagoon fall as much as 16.7% to A$0.0025, their lowest level since May 14, 2020
** Stock posts its biggest intraday pct decline since July 3
** The diversified miner says it is undertaking a 1 for 1 entitlement offer to raise A$1.24 mln ($836,380.00)
** Offer price of 0.2 AU cents per new share is at ~33% discount to last close on Aug. 22
** Says funds raised will be used for exploration for gold at Burracoppin Gold project, among others
** Shares down 50% YTD at 0350 GMT
($1 = 1.4826 Australian dollars)
(Reporting by Echha Jain in Bengaluru)
((Echha.jain@thomsonreuters.com))
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