Francisco Pizarro had accompanied Balboa in the crossing of the Isthmus of Panama. In 1524 he formed a partnership with priest Hernando de Luque and soldier Diego de Almagro to explore the south, agreeing to divide the profits. They dubbed the enterprise the "Empresa del Levante": Pizarro would command, Almagro would provide military and food supplies, and Luque would be in charge of finances and additional provisions.
On 13 September 1524, the first of three expeditions left to conquest Peru with about 80 men and 40 horses. The expedition was a failure, reaching no farther than Colombia before succumbing to bad weather, hunger and skirmishes with hostile locals, were Almagro lost an eye. The place names bestowed along their route, Puerto deseado (desired port), Puerto del hambre (port of hunger) and Puerto quemado (burned port), testify these difficulties. Two years later they proceed in a second expedition with reluctant permission from Panama Governor. In August 1526, they left with two ships, 160 men and several horses. Upon reaching San Juan River they separated, Pizarro staying to explore the swampy coasts and Almagro sent back for reinforcements. Pizarro's main pilot sailed south and, after crossing the equator captured a raft from Tumbes. To his surprise, it carried textiles, ceramic and much-desired gold, silver, and emeralds, becoming the central focus of the expedition. Soon Almagro joined with reinforcements and they resumed. After a difficult voyage facing strong winds and currents, they reached Atacames were they found a large native population under Inca rule, but they seemed so dangerous that they didn't enter land.
Pizarro stood at safe near the coast, while Almagro and Luque went back for reinforcements with proof of the found gold. The new governor outright rejected a third expedition and ordered two ships to bring everyone back to Panama. Almagro and Luque grasped the opportunity to join Pizarro. When they arrived at the Isla de Gallo, Pizarro drew 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." Thirteen men decided to stay and became known as The Famous Thirteen. They headed for La Isla Gorgona, where they remained for seven months before the arrival of provisions.
They decided to sail south and, by April 1528, reached the northwestern Peruvian Tumbes Region and were warmly received by local Tumpis. Two of Pizarro's men reported incredible riches, including gold and silver decorations around the chief's house. They saw for the first time a Llama which Pizarro called "little camels". The natives named the Spanish "Children of the Sun" for their fair complexion and brilliant armors. They decided then to return to Panama to prepare a final expedition. Before leaving they sailed south through territories they named such as Cabo Blanco, port of Payta, Sechura, Punta de Aguja, Santa Cruz, and Trujillo, reaching the ninth degree south.
In the spring of 1528 Pizarro sailed for Spain, were he had an interview with king Charles I. The king heard of his expeditions in lands rich in gold and silver and promised to support him. The Capitulación de Toledo authorized Pizarro to proceed with the conquest of Peru. Pizarro convinced then many friends and relatives to join: his brothers Hernándo Pizarro, Juan Pizarro, Gonzalo Pizarro and also Francisco de Orellana, who would later explore the Amazon River, as well as his cousin Pedro Pizarro.
Pizarro's third and final expedition left Panama for Peru on 27 December 1530. With three ships and one hundred and eighty men they landed near Ecuador and sailed to Tumbes, finding the place destroyed. They entered the interior and established the first Spanish settlement in Peru, San Miguel de Piura. One of the men returned with an Incan envoy and an invitation for a meeting. Inca were at a civil war and Atahualpa had been resting in northern Peru following the defeat of his brother Huascar. After marching for two months, they approached Atahualpa. He, however, refused the Spanish by saying he would "be no man's tributary." There were fewer than 200 Spanish to his 80,000 soldiers, but Pizarro attacked and won the Incan army in the Battle of Cajamarca, taking Atahualpa captive at the so-called ransom room. Despite fulfilling his promise of filling one room with gold and two with silver, he was convicted for killing his brother and plotting against Pizarro, and was executed.
In 1533, Pizarro invaded Cuzco with indigenous troops and wrote to the king Charles I: "This city is the greatest and the finest ever seen in this country or anywhere in the Indies... it is so beautiful and has such fine buildings that it would be remarkable even in Spain." After the Spanish had sealed the conquest of Peru, Jauja in fertile Mantaro Valley was established as Peru's provisional capital, but it was too far up in the mountains that Pizarro thus founded the city of Lima on 18 January 1535, considered by himself one of the most important acts in his life.
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