I think this is a positive way to raise funds and demonstrates...

I think this is a positive way to raise funds and demonstrates the company's willingness to maintain sh interests at the centre of their decision making. In the scheme of things it is a relatively small amount of money off the bottom line for the life of mine.
Subscribers do good too, and so they should imo. They are keeping the company cashed up with minimal dilution (500k options) whilst the foundations are laid.

I have calculated the cost to the business as follows using the scoping and pfs numbers ie $1.6b over 16 years. This does not include the recently announced upgrade to the PG resource.

Note that it was announced previously the company was seeking $2M in this first tranche and my figures are only for the $500k as per the announcement. I expect more money to come in and this announcement was likely timed for the quarterly and the requirements for a healthy bank account balance.

Option 1 - no buyback of the royalty
$1.6b x .25% = $4M
Option 2 - buyback of 60% of royalty
($500k x 1.25) + ($1.6b x .1%) ~ $1.6M

Don't forget that there is also $100k of options (500k shares x $0.25) to come back into the bank account should they be in the money.

Happy to be corrected on my calculations.