** Shares of Australia's Hillgrove Resources HGO.AX fall as much as 9.5% to A$0.038

** The miner secures A$28 million ($18.41 million) placement at an issue price of A$0.035 per share

** Issue price at 16.7% discount to stock's last close

** Proceeds raised will be used to start drilling and development at Emily Star project in South Australia, others - HGO

** About 13.7 million shares change hands, 2.2x the 30-day average volume

** Stock has fallen 26.9% this year, including session losses

($1 = 1.5209 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com;))