** Shares of VHM VHM.AX drop as much as 24.4% to A$0.355, their lowest level since October 13

** Mineral and sands and rare earth producer to raise A$10.3 million ($6.65 million) via placement

** Offer price of A$0.35 per share represents a 25.5% discount, as of VHM's last close on Nov 20

** VHM was on a trading halt on Friday, Nov 21

** Proceeds from placement to be used to support Goschen project, a rare earth site in Australia

** Stock down 11.52% YTD, including day's moves

($1 = 1.5480 Australian dollars)

(Reporting by Aamir Sheik Khalid in Bengaluru)

((Aamir.SheikKhalid@thomsonreuters.com))