** Shares of Australia's Ausgold AUC.AX fall as much as 10.2% to A$0.790, their biggest intraday fall since October 22

** The gold exploration firm announces a fully underwritten A$80 million ($51.97 million) two-tranche placement at an issue price of A$0.80 per new share

** Proceeds will be used towards the development of the Katanning Gold Project including construction of a workforce accommodation facility, land acquisition payments, further exploration and general working capital

** Placement price represents 9.1% discount to co's last closing price

** Ausgold adds the company is also undertaking a share purchase plan at A$0.80 per new share to raise up to A$10 million

** AUC gains 94.1%, YTD

($1 = 1.5394 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))