Updated 4.50pm
Shawn Thewma, 43, from Xewkija, pleaded not guilty to possession of cocaine and cannabis in circumstances denoting they were not for his personal use, simple possession of the drugs and possession of unlicensed weapons and ammunition.
Magistrate Bridgette Sultana ordered the freezing of all his assets.
The man was arrested on Thursday in a drug operation during which cocaine, cannabis, cash, rifles and ammunition were seized.
The police said in a statement that they had acted after receiving information about potential drug trafficking during carnival activities in Gozo.
They immediately set up an operation to surveil a farmhouse in the Nadur area.
At around 10am on Thursday, they entered the farmhouse and arrested a man who was armed with a pistol.
During a search, members of the Drug Squad assisted by the Dogs Section found several sachets of what they suspect is cocaine and also cannabis. They also found €53,000 in cash, two rifles and ammunition.
None of the weapons are licensed.
An inquiry is being held.
On Friday, his parents Alfred and Rita told court they were ready to act as their son's guarantors, even risking going to jail if he breached any of his bail conditions.
However, police inspector Alfredo Mangion objected to the bail request, explaining that the police had arrested another civilian who is assisting in the investigation and will be brought to testify in the case.
The court denied the request and Thewma was remanded in custody. Lawyers Stefano Filletti and Joe Reno Vella were defence counsels.