Francisco Pizarro and Diego de Almagro, two of the three partners—the third is a priest, Hernando de Luque—in the proposed, and thus far unsuccessful, conquest of Peru—it had decided after much wrangling that Pizarro would stay at a safer place, the Isla de Gallo, near the coast, while Almagro would return yet again to Panama with Luque for more reinforcements—this time with proof of the gold they had just found and the news of the discovery of an obvious wealthy land they had just explored.

The new governor of Panama, Pedro de los Ríos, had learned of the mishaps of Pizarro's expeditions and the deaths of various settlers who had gone with him.

Fearing an unsuccessful outcome, he had outright rejected Almagro's application for continued resources.

In addition, he had ordered two ships commanded by Juan Tafur to be sent immediately with the intention of bringing Pizarro and everyone back to Panama.

The leader of the expedition had no intention of returning, and when Tafur arrived at the now famous Isla de Gallo, Pizarro had drawn a line in the sand, saying: "There lies Peru with its riches; Here, Panama and its poverty. Choose, each man, what best becomes a brave Castilian. For my part, I go to the south.”

Only thirteen men had decided to stay with Francisco Pizarro on the Isla de Gallo; they will later become known as "The Famous Thirteen" (Los trece de la fama), while the rest of the expedition members had stayed with Tafur aboard his ships.

Pizarro's Piloto Mayor (chief pilot), Bartolomé Ruiz, also left in one of the ships with the intention of joining Almagro and Luque in their efforts to gather more reinforcements and eventually return to aid Pizarro.

Soon after the ships left, Pizarro and his men had constructed a crude boat and journeyed twenty-five leagues north for La Isla Gorgona, where they will remain for seven months before the arrival of new provisions.

Back in Panama, Pedro de los Ríos (after much persuading by Luque) had finally acquiesced to the requests for another ship, but only to bring Pizarro back within six months and completely abandon the expedition.

Both Almagro and Luque had quickly grasped the opportunity and left Panama (this time without new recruits) for La Isla Gorgona to once again join Pizarro.

On meeting with Pizarro, the associates on the recommendations of Ruiz's Indian interpreters decide to continue sailing south.