The Spanish victory in Bangkusay and Legazpi's alliance with Lakandula of Tondo, enabled the Spaniards to establish themselves throughout the city and its neighboring towns.

Miguel López de Legazpi was searching for a suitable place to establish the Spanish colonial capital after being forced to leave first Cebu and then Iloilo by Portuguese pirates.

[6] The Spanish ships, led by Martin de Goiti, were ordered to be fastened two-by-two which created a solid mass formation which seemed to be an easy target.

Among those who would not come was a village called Butas, situated on an inlet on the other side of the river flowing past Manilla, and about a league and a half away.

When they saw that he was entering the port, they sailed out to attack him with their boats (which were, as I said, twenty or thirty in number), and with a great outcry began to fire their culverins and many arrows.

Taking note of the order used by the enemy, the command was given for the Spaniards to fasten their boats by twos, and to row slowly toward the opposing forces.

On the morning of the next day the master-of-camp came to the city with all the booty, and divided the prisoners as slaves among the soldiers, reserving a fifth for his Majesty.The peace which Rajah Soliman and Lacandola had made, was, on their part, by no means sincere, for the Indios of Macabebe and Hagonoy, appearing at the mouth of the harbour of Bancusay, with forty caracoas (an Indio vessel), proceeded to the house of Lacandola.

The chief of the Indios, after listening to these ambassadors, leaped on his feet, and drawing and flourishing his cimeter [scimitar], he said, “The sun gave me life, and I must not be disgraced in the eyes of my women, who would detest me, if they thought I was capable, of being on friendly terms with the Spaniards.” With this speech he quitted the house, without waiting to go down by the ladder, for, with great boldness, he leaped out of the window into his caracoa, calling out to the Spaniards, “I expect you in the bay of Bancusay.” Legaspi determined upon punishing such conduct, and sent against him the Colonel Martin de Goite with eighty Spaniards, in some newly constructed small vessels.

The battle began, and he fought with great valour; but, in a short time, being killed by a musket shot, the rest dismayed, fled with great precipitation; our people pursued, and made many prisoners, among whom were the son of Lacandola, and his nephew, by which his deceit and dissimulation were sufficiently manifest; the chief, however, sent them home, without the punishment they merited for their treason.