Both are very valid - the expectation changed from it being a...

Both are very valid - the expectation changed from it being a insto placement to a placement to another mining company. The heavy discount was on the basis of the standard insto placement which is what was rumored at the time. What seems to have eventuated is IGO taking a strategic stake without paying a premium (which is odd compared to other similar transactions).
Getting IGO to participate at a higher price is of course less dilutive than just the insto placement however they can exert more control which insto placement cannot.

I have changed my sentiment to hold - I think based on the placement it significantly reduces the risk of going under in the short term.
I am not a buyer though - there are plenty of other lower risk opportunities in the market - in this environment I am also happy to sit out and to see it play out. Also given the extensive dilution the potential upside is also far less.

On the zinc market, the drop in TCs and the drop in some of the Chinese metal inventory is certainly bullish for the short term. A large part being some of the large Sth American zinc mines being temporarily down but will be back again. Longer term I am far from convinced from a zinc demand perspective.