The units offered by Mackie Research Capital Corporation and Eventus Capital Corp also give holders a half-warrant exercisable to acquire a share at $1.10 within two years.
Dolly Varden says it will use the funds to advance exploration and mineral resource drilling at the Dolly Varden silver property in northwestern British Columbia.
The North Star mine at Dolly Varden produced 1.3Moz of silver at an average grade of 1,109gpt between 1919-1921. Dolly Varden has current total indicated (3.41 Mt at 300gpt) and inferred (1.285Mt at 277gpt) resources of more than 44Moz.
Dolly Varden's (TSXV: DV) share price has tripled since the start of the year on higher silver prices.