The funds are being raised through a non-brokered private placement of up to 83.34 million units at C$0.06 per unit.
Each unit is to consist of one common share and one warrant, which will entitle the holder to buy an additional share at C$0.14 for two years from closing.
The company's share price was quoted at C$0.07 on the Toronto Stock Exchange on March 21, having fallen by 22% day-on-day. The company has a market capitalisation of C$13.73 million.
The Sprott-backed company, as of March, had no debt and C$100,000 in cash.
Sprott and Management hold a 15% stake in Metallum, while ASX-listed Frontier Energy holds 65%.
The Superior Lake zinc project has a NI 43-101 resource of 2.35 million tonnes at 17.9% zinc, 0.9% copper, 0.4g/t gold and 34g/t silver. The gold-equivalent resource is 13g/t at roughly 1 million ounces, the company says.
Late last year, a feasibility study for the project - which is near the town of Schriber, east of Thunder Bay in Ontario - showed an estimated after-tax net present value of C$131.3 million with an after-tax internal rate of return of 23% at a zinc price of US$1.22/lb.
The mine life stands at 8.5 years at an average annual EBITDA of C$67.6 million.
It has an all-in sustaining cost of US$0.40/lb.
It also has low initial capital costs due to existing infrastructure, both at site and in surrounding areas, the company says.