** Shares of Australia's Red Metals fall as much as 16% to A$0.105, its lowest level since Jan 31

** Stock posts its biggest intraday pct fall since Feb 6

** Mineral explorer says share purchase plan (SPP) targeting to raise A$2.0 mln ($1.37 mln) at an issue price of A$0.10 per share

** Issue price at a discount of 20% to stock's last closing

** Adds proceeds from SPP to be used for drilling at its projects

** Stock has risen 11.7% YTD as of 0038 GMT

($1 = 1.4643 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))