** Shares of Dreadnought Resources DRE.AX fall 13.3% to A$0.013, their lowest level since February 21

** Stock set for weakest trading session since February 5

** Explorer and developer receives firm commitments for A$8.5 mln ($5.35 mln) (before costs) placement at issue price of A$0.012 per share

** Placement is at a 20% discount to last close

** Co offers share purchase plan, capped at A$1.5 mln at the same share price as placement

** About 12.3 mln shares change hands vs the 30-day average of 5.6 mln

($1 = 1.5891 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.Kumar@thomsonreuters.com))