** Shares of Terra Metals TM1.AX rise 11.9% to A$0.047, their highest since October 31

** The diversified critical metals explorer raises A$4 million ($2.59 million) at A$0.035 per share, a discount of 16.7% to its last close

** Says proceeds will be used to continue exploration and development of its flagship Dante Project in Western Australia

** Stock on track for best day since May 29, if gains hold

** About 10.8 mln shares change hands, 6.4x the 30-day average of 1.7 mln shares

** Stock up 67.9% YTD, including moves in the current session

($1 = 1.5449 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))