** Shares of Australian Strategic Materials ASM.AX fall as much as 22.4% to A$1.25, their lowest level in a week

** Critical metals producer raises A$55 million ($35.76 million) in a share placement

** Issue price of A$1.2 per share represents a discount of 25.5% to stock's last close

** About 2.8 mln shares change hands, 1.8x the 30-day average of 1.8 mln

** Stock has more than doubled in value so far this year

($1 = 1.5382 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

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