In October 1804,
Lively was under the command of Captain
Graham Eden Hamond. , 1804,
John Thomas Serres On 5 October, a British squadron of four frigates,
Lively,
Medusa, and
Amphion and, with
Graham Moore as Commodore,
Indefatigable, intercepted four Spanish frigates under the command of Rear-Admiral Don Joseph Bustamente, Knight of the Order of St. James, off Cadiz. The Royal Navy took
Medea into service as and
Clara as . The value of the treasure was very large, and if it had been treated as
Prize of War then Moore and his brother captains would have become extremely wealthy. As it was the money (and ships) were declared to be "Droits of Admiralty" on the grounds that war had not been declared, and the captains and crew shared a relatively small
ex gratia payment of £160,000 for the bullion, plus the proceeds of the sale of the hull and cargo. ==Action of 7 December 1804==