[3] In 1850, the town was founded by Captain Felipe Custodio and Capitan Luis Patino.

It was named "Placer" (Spanish for "pleasure" or "delight") by Custodio in reference to the happiness derived from local gold mining, as well as the abundant fish and rice harvests.

Their goals seemed to be to fill drums with oil from a storage tank there for their use and to search for lumber.

On October 10, guerrillas under American leadership attacked with 135 men from both the north and south to dislodge the Japanese from Placer.

[6] Placer is in the northeast of Mindanao Island, facing the Hinatuan Passage to the east.