The news of the British presence in the Islands reached Spain, and a group of five frigates was ordered to sail to the Falkland Islands, or Islas Malvinas as the Spanish called them.  In June 1770 the Industria reached Port Egmont, followed by four more frigates.

The British sloop Favourite was anchored in the Port, commanded by Captain George Farmer.  The only other fortifications were a block-house and a mud-built battery mounting four twelve pound guns.  After making defence preparations, Farmer sent a letter to Juan Madariaga, the Commander of the Spanish vessels, requesting him to leave.  Madariaga in reply invited Farmer to view the Spanish force.

The Spanish force appeared to number sixteen hundred men with considerable arms, far out-numbering and out-gunning the British contingent.  Farmer refused to yield, prompting the Spanish force to land.  Although shots were exchanged, Farmer was forced to raise a flag of truce.