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Intelligence was soon received at Panama of the exploit of Verdugo at Truxillo, and his having gone to Nicaragua; and as Hinojosa suspected he might increase his force in that province so as to be enabled to disturb him in the possession of the Tierra Firma, he sent Alfonso Palamino with two ships and an hundred and eighty musqueteers to endeavour to dislodge Verdugo.

At the same time, and for the same purpose, Juan Alfonso Palamino had landed with fifty men, yet keeping his boats always in readiness to reimbark, in case of the return of Gonzalo.

Palamino easily took possession of the ship belonging to Verdugo; but as the inhabitants of Grenada and Leon, the two principal cities in the province of Nicaragua assembled in arms, under Verdugo and the licentiate Ramirez, to oppose his landing, and were much superior in number to his troops and provided with cavalry, he found himself unable to land with any prospect of success.

The president arrived first of all at Jauja with an escort of an hundred men, where he immediately took the proper measures for collecting arms and military stores, and provisions. On the same day he was joined by the licentiate Carvajal and Gabriel de Royas; and soon afterwards Ferdinand Mexia de Guzman, and Juan Alphonzo Palamino arrived with their companies.