Thanks for the clarification, sorry for the misunderstanding....

Thanks for the clarification, sorry for the misunderstanding. Either way issuing a whole heap of stock is dilutive.
$2M worth of shares right now at say 20c would mean a 20% dilution, it would more likely be 15c so approx 30% dilution. That would send a shocking message to the market.
The proposed capital raise simply tells me that management are maintaining a tight register and that the investors fosters procure are happier with royalties. It actually points towards a fairly obvious statement that HVY is almost certainly going to mine and that royalties (and dividends) to shareholders will be significant.
If they pull this off then it will send a very clear message that the end game is likely and will be profitable.
The less stock on issue the higher ones percentage share of divided payments. And dividends have been on the lips of the chairman for some time. Kenneth Hall who founded Kalgoorlie Power Systems isn't the top shareholder in HVY because he is flipping a coin, I'm sure he has confidence in HVY's NPV and potential market cap as per the conservative scoping study.
1st things first though, let's see if they raise the $2M. If they do it's game on in my opinion.