Around 1509, under a land grant from the Spanish king, he became founder and governor of the colony of Castillo del Oro, in what is now Panama, one of the first two Spanish settlements on the American mainland (different sources give dates from 1508 to 1510).
In 1511, Vasco Nuńez de Balboa, seeing Nicuesa as a rival for possible fame and fortune that would go to the Spaniard who found a route across the Isthmus of Panama[?], set Nicuesa adrift on an un-seaworthy boat; he and his crew drowned.
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