The Church of Mercy was built in 1728, on the site of a 1400's church, with construction lasting nearly twenty years, ending in 1746. After the January 1, 1980 earthquake, this temple was one of the least affected temples in Angra, serving as a repository of sacred art that was transferred from other temples in order to speed up their reconstruction. The church contains 6 chapels, a single nave, and a 200 year old organ.
The primitive hermitage was erected under the invocation of Nossa Senhora dos Remédios, next to the houses that belonged to the descendants of Pedro Anes do Canto, a rich man mentioned by Francisco Ferreira Drumond and who, upon his death, established three bonds.
The current building was built over the previous Church of São Salvador, probably dating back to 1496.
The history of this hermitage is linked to João Vaz Corte Real who, before moving to Terceira Island, traveled to several provinces of the kingdom of Portugal in an attempt to gather workers and craftsmen to bring with him to Terceira Island. When he arrived on this island, he settled in the Captaincy of Angra, while Álvaro Martins Homem settled in the Captaincy of Praia. It is possible that this same group of sailors had come to this island after João Vaz Corte Real was already there, it is assumed that they were the ones who built this chapel with the help of the donee's Captain and several noble families who with him They came to Terceira.
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