Poland's KGHM Hasn't Proposed Takeover - Metminco Director

South American copper and gold explorer Metminco Ltd (MMCLF) said Thursday it hasn't been approached by Poland's KGHM Polska Miedz SA (KGH.WA) with regard to a potential takeover proposal.

"As far as I'm aware we had no contact with them," said Tim Read, a nonexecutive director of Metminco, on the sidelines of the Jefferies copper conference here.

KGHM said earlier this month that it was looking at two additional takeover targets after completing its $2.9 billion purchase of Quadra FNX Mining Ltd. although it didn't disclose any names.

KGHM's CEO Herbert Wirth said the Poland-based copper producer and has made inquiries with banks for possible loan offers that could be used to fund further takeovers. KGHM, which is largely debt-free, funded its acquisition of Quadra with its large cashpile stemming in part from the sale of telecommunication assets last year.

Metminco has a portfolio of five copper and gold projects in Peru and Chile and has share listings in London and Sydney. The company's shares in Sydney have a market capitalization of $284 million.

-By Alex MacDonald, Dow Jones Newswires; [phone]; [e-mail]

--Marcin Sobczyk and Patryk Wasilewski in Warsaw contributed to this story.