Under the deal, True Gold will supply the syndicate with 20,000oz of gold a year for the first five years, as of 2016.
Sandstorm, which will have 25% ownership, will receive around 5,000oz a year for the first five years and subsequently 6.5% of the gold produced at the project.
Franco-Nevada will hold the remaining 75% of the syndicate.
Sandstorm and Franco-Nevada provided True Gold with an 18 month option to increase its funding by an additional $20m, to receive eight quarterly deliveries of up to 30,000oz of gold.
Sandstorm Gold senior executive vice-president and co-founder David Awram said: "As the first syndicated gold stream, this transaction is a milestone event for the streaming and royalty sector.
"Streaming finance has become a mainstream source of funding in the mining industry and I expect we will see more syndicated transactions in the future."
The Karma project consists of five mineral deposits with probable mineral reserves of 949,000oz of gold.
True Gold previously received permits to start construction at the mine, which is expected to begin this September, and the first gold is expected by the end of 2015.
The mine is expected to produce around 97,000oz of gold a year during its life time of 8.5 years.