The Perimeter Airlines, SA226-TC, Metro II, C-FIHE, was landing on runway 18 after completing an uneventful flight from Muskeg Lake with a crew of two and three passengers on board. The aircraft landing gear was down-and-locked and the position indication system was displaying three green. The First Officer was flying the aircraft and the Captain was performing the functional role of non-flying pilot. The aircraft touched down on the right main landing gear. The Captain selected what he thought was flaps up. The aircraft settled beyond normal on the left side and an abnormal sound was heard. The Captain noted that the landing gear was indicating an in-transit condition and the flaps were indicating a full-down position. The Captain took control of the aircraft, applied full power and climbed the aircraft away from the runway. The crew did not experience abnormal temperatures, pressures or vibrations as they completed a circuit and subsequently landed the aircraft without further incident. There were no injuries. A post-landing inspection of the aircraft indicated that the propeller blade tips of the left propeller and the belly of the aircraft had come into contact with the runway surface during the rejected landing. The landing gear operated normally during the subsequent landing and during gear retraction tests conducted after the occurrence.