** Shares of Australia's Star Minerals fall as much as 9.1% to A$0.050, their biggest one-day pct decline since late-Sept

** Stock at its lowest level since Sept. 27 ** Mineral explorer announces renounceable rights issue to raise up to A$2.5 mln ($1.65 mln) at A$0.04 per share, which represents a discount of 27.3% to stock's last close

** Funds to be used to enable co to commence exploration activity at the Cobra Project-Namibia project, co says

** Stock has risen 25% this year, as of 0223 GMT

($1 = 1.5147 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru) ((mailto:Roshan.Thomas@thomsonreuters.com))