** Shares of Riedel Resources RIE.AX fall 11.8% to A$0.03, their lowest level since September 24

** Mineral exploration co to raise up to A$1.78 million ($1.16 million) at 2.5 Australian cents per share

** Issue price represents a discount of 26.5% to stock's last close

** Stock down 3.2% YTD

($1 = 1.5382 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

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