Francesco Pizarro, Diego d'Almagro, and Fernando de Luque, were rich in Panamà, but hearing that assuredly all the southern coast abounded in gold, silver, turquoises, and emeralds, they combined together and determined to go and discover new countries; each promising faithfully to do his duty and share in a brotherly manner all the riches, the lands, and the people whom they should find and conquer. Having made this agreement, they bought two ships, with arms and ammunition; and they raised two hundred and twenty soldiers. And thus, in the year 1526, Pizarro and Almagro left Panamà within a few days of each other; appointing the priest to provide whatever was requisite. When Pizarro had navigated about three hundred miles, he landed in a spot where the natives, making some resistance, killed several Spaniards and wounded him, with some others. After this bad beginning he returned to Panamà, repenting of having entered on such an enterprise.

Almagro entered a river, which he named San Giovanni, and was well received by the natives, who gave him upwards of three thousand ducats' worth of gold. He then put to sea again, and coasting along reached the spot where his companion had been so ill-treated. He landed, the Indians attacked him, and a stone which they threw wounded him in the eye, so that he afterwards lost it.