On taking the resolution of marching from Quito, the viceroy sent his brother-in-law, Diego Alvarez de Cueto, to inform his majesty of the state of affairs, and to solicit such reinforcements as might enable him to re-establish his authority in Peru, by waging war against Gonzalo Pizarro.  Cueto went accordingly to Spain in the same fleet with Vaca de Castro and Texada, as already related.  The viceroy advanced southwards to San Miguel, which is an hundred and fifty leagues from Quito, determining to remain at that place till he might receive farther orders from his majesty.  The inhabitants of San Miguel gave him the best reception in their power, and furnished him as far as they were able with every thing he was in want of.  He continually kept his small army on foot, to preserve the honour and reputation of his character as viceroy, and that he might be in a convenient situation for receiving such reinforcements as might come from Spain or from any of the American colonies; as every one coming by land from these quarters must necessarily pass by the way of San Miguel, especially if accompanied by horses or beasts of burthen.  He expected therefore to be able in this place to collect reinforcements to his army, so as to be in condition to renew the war, and employed himself to collect men, horses, and arms, so that he was soon at the head of five hundred men, tolerably equipped.  Some of these indeed were in want of defensive armour, which they endeavoured to supply by fabricating cuirasses of iron, and of hard leather.

At the time when Gonzalo Pizarro sent Bachicao with the brigantines to get possession of the ships belonging to the viceroy, he dispatched Gonzalo Diaz de Pinera and Jerom de Villegas to collect the soldiers who dwelt in Truxillo and San Miguel, that they might make head against the viceroy in the north of Peru.  These officers remained in San Miguel with about eighty men whom they had drawn to their party, till they heard of the approach of the viceroy; on which, not being in sufficient force to oppose him, they retreated towards Truxillo, and established themselves in the province of Collique, about forty leagues[14] from San Miguel.  From thence they sent intimation to Gonzalo of the advance of the viceroy, and that his army increased daily in numbers, insomuch that it behoved him to think of some appropriate measures to avert the threatened danger.  Diaz and Villegas were likewise informed that the viceroy had sent Juan de Pereira, one of his officers, into the province of Chachapoyas, in which there were very few Spanish settlers, to endeavour to collect reinforcements.  As they believed that Pereira and his followers entertained no suspicions of their being in the neighbourhood, Diaz and Villegas determined on attempting to surprize them, which they did so effectually one night, that they made the whole party prisoners without resistance.  Having beheaded Pereira and two of his principal followers, they obliged the rest of the party, about sixty horsemen, to enter into the service of Gonzalo, by threats of putting them all to death if they refused; after which they returned to their post.