KITCHENER -- Guelph Police have located nearly $10,000 of cocaine at a residence after officers observed an alleged drug deal.

Officials say they saw a 21-year-old man and 45-year-old man, both from Guelph, meet in a manner consistent with a drug transaction on Friday.

Police arrested the two and say they verified that the 21-year-old had trafficked roughly $140 worth of cocaine to the other man.

A search warrant was then executed at the 21-year-olds residence. Police say they located roughly $8,000-$10,000 of cocaine and $3,800 of cash.

The 21-year-old has been charged with trafficking a controlled substance, possession with the purpose of trafficking, and breach of probation.

The 45-year-ol has been charged with possession of a controlled substance.

An 18-year-old woman was also charged with possession for the purpose of trafficking.