NSW man charged over rocket launcher

A man accused of selling prohibited modified weapons including a rocket launcher after police raided his central-west NSW property has been granted a bail.

Raymond Alexander Burt, 69, was arrested on Tuesday at The Marra - about three hours' drive northwest from Dubbo - following an investigation into the supply of prohibited drugs and firearms across the state.

Police later seized more than 700 firearms, including 11 unregistered guns, at a home at Nyngan.

The man, who is a registered gun dealer, faces 28 charges including selling a number of prohibited weapons, unregistered firearms and ammunition.

Detective Superintendent Robert Critchlow said the arrest and seizure of firearms was the result of an 18-month investigation.

"NSW Police support safe and legal firearm ownership, however, those responsible for illegally dealing guns for the purpose of criminal activity will be investigated, arrested and put before the courts," Det Supt Critchlow said in a statement.

Burt, whose firearms dealer licence has now been suspended, appeared before magistrate Gary Wilson at Dubbo Local Court on Wednesday.

He was granted a conditional $10,000 bail and is due to next face court on August 13.