The movie is set some time after the events of ''Treasure Island''. Long John Silver receives grave news from Dod Perch of a massacre by Mendoza, who had also kidnapped Governor Strong's daughter Elizabeth for ransom along with Jim Hawkins. Long John also learns of a second treasure cache on Treasure Island; the only clue to its location is a pirate medallion. Long John visits Governor Strong and his wife and proposes to deliver the ransom before they pursue Mendoza.