** Shares of KGL Resources KGL.AX fall 3.4% to A$0.099, their lowest level since Feb. 20

** Miner proposes entitlement offer of fully paid ordinary shares to raise up to A$7.7 million ($4.88 million)

** Offer price of A$0.095 per new share is at a 7% discount to the stock's last close

** KGL up 4.2% YTD

($1 = 1.5790 Australian dollars)

(Reporting by Adwitiya Srivastava in Bengaluru)

((Adwitiya.Srivastava@thomsonreuters.com))