Yes I think 0.5Ω with 12Ω in parallel will work, for the 500mA range shunt to get R8 0.48Ω and wattage... at least 1/2W but perhaps higher say 1W to tolerate some overload.
Not sure of the original part's rating.
edit: The original 1970's resistors are made by KOA and metal film, OP's shunt looks wire-wound though. Standard
EIA values are 0.47 and 0.481 (but no stock of that could I find).
Going to 0.47Ω would be around 2.1% low on 500mA range DC current measurements, others less lower compared to the original 0.48Ω