What happened

Shares of Yamana Gold (AUY) jumped 20% on Friday after the Canadian gold miner received a new buyout bid. 

So what

Agnico Eagle Mines (AEM 0.66%) and Pan American Silver (PAAS -0.25%) submitted a joint bid for Yamana that values the mining company at $4.8 billion, or $5.02 per share. The agreement would see Yamana sell its interest in the Canadian Malartic mine and other assets to Agnico Eagle. Pan American would then acquire all of Yamana's outstanding shares.

Under the terms of the deal, Yamana shareholders would receive roughly $1.04 in cash, 0.1598 of a Pan American share, and 0.0376 of an Agnico Eagle share for each share of Yamana they own. 

The deal could boost Pan American's annual precious metal production to as much as 30 million ounces of silver and 1.2 million ounces of gold. The agreement would also give Agnico Eagle full ownership and operational control of the Canadian Malartic mine.

Now what

Yamana's board of directors determined that Agnico Eagle and Pan American's bid is superior to the acquisition offer it received from Gold Fields (GFI 2.25%) in May. Gold Fields now has five business days to match the new offer if it so chooses.

"The emergence of another offer indicates that other mining companies see the inherent value in Yamana's assets," Gold Fields CEO Chris Griffith said in response. 

Griffith contested Yamana's assertion that Agnico Eagle and Pan American made a better offer. "Gold Fields' offer remains strategically and financially superior to the joint offer with lower operational and execution risk and higher sustained returns, given Gold Fields enjoys the free cash flow, balance sheet profile, and technical capabilities to unlock the full potential of Yamana's assets," Griffith said.

Gold Fields, in turn, said it would "continue to work toward the completion of the transaction for the benefit of the shareholders of both companies." Whether that results in a higher offer for Yamana remains to be seen.