A MELBOURNE man accused of carrying out a "problematical" drug transaction in Mildura has been refused bail.

Damien Smith, 47, had spent 71 days in pre-sentence custody when he appeared before Mildura Magistrates' Court on Friday on two sets of charges.

The court was told that on October 9 this year Mr Smith drove to Mildura with 3.5 grams worth of methylamphetamine with the intention of selling...