John Brandon Smith appeared in Summary Court on Tuesday, when he elected to have firearm charges against him tried in Grand Court.
The unlicensed handgun and 12 rounds of ammunition were found by police in the South Sound home of a local businessman on May 2.
The court heard that the businessman had agreed about a month earlier to let Smith and his wife stay in the home.
Police found a Raven Arms MP-25 .25 semiautomatic pistol and 12 rounds of .25 ammunition in a knapsack in the living room.
Smith, 24, has been in custody since his arrest. Defense attorney Prathna Bodden said she would not be making a bail application that day.
Magistrate Valdis Foldats advised that Smith could apply for bail in the Grand Court.
The magistrate held a short-form preliminary inquiry, in which Ms. Bodden agreed that the papers in the case as produced by the prosecution could be admitted. Crown counsel Greg Walcolm provided copies of the documents to the defense and to the magistrate.
The case will be mentioned in Grand Court on Friday, June 2.