In February, after the abdication of King Amadeo I and the proclamation of the First Spanish Republic, General Dorregaray arrived to lead the Carlist army in the Basque Country, starting a campaign against government forces. At May 5, Carlist forces under the command of Dorregaray and Rada won an important victory at Eraul (Navarre), inflicting heavy casualties on a government army led by General Navarro, taking many prisoners. Three months later, Carlos VII entered the Basque Provinces, and in August, Carlist forces captured the city of Estella, establishing their capital and a provisional government under the leadership of Carlos VII.