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Founded as a Spanish Colony in 1510 by Diego De Nicuesa , it was the first Europe an settlement on the Isthmus Of Panama . Originally a major port of call for the Spanish Treasure Fleet , Nombre de Dios was situated near an unhealthy Swamp , and was nearly impossible to Fortify . Francis Drake sacked the colony in June of 1572 , and ambushed the Silver Train , a mule convoy carrying a fortune in Precious Metal s, in March of the following year. By the 17th Century Nombre de Dios had been all but abandoned by the Spanish , and its importance to the treasure fleets had been surpassed by Puerto Bello . The town still exists today, though it is nowhere near as large as it was in the 16th Century . Prior to the construction of the Panama Canal , Nombre de Dios was the starting point of a series of River s and paths by which Ship s could cross from the Caribbean to the Pacific Ocean . See also |