Two people were arrested on Sunday over a case of conspiracy to commit a crime and illegal possession and transportation of explosives.
A third individual is being sought.
According to Paphos CID chief Michalis Nicolaou, at 1am the owner of a hotel tipped the police off about nine military cartridges found in a guest room whose occupant had left shortly beforehand.
Members of Paphos CID then arrived on scene and collected the cartridges for examination.
In the previous 24 hours it was discovered that three people, aged 22, 22 and 27, had stayed in or visited the room.
Arrest warrants were issued against the 27-year-old and one of the two 22-year-olds, who were arrested as they tried to depart from Larnaca airport at around 8pm on Sunday.
During questioning, testimony against the other 22-year-old emerged.
An arrest warrant is expected to be issued against the wanted 22-year-old on Monday.