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Pure maghemite (γ-Fe2O3) nanoparticles were prepared via so-called homogeneous co-precipitation method using urea and ammonia as precipitation agent for ferrous and ferric ions at ambient temperature. X-ray diffraction, energy dispersive spectrometer and Fourier transform infrared spectrophotometer revealed that the obtained product was pure γ-Fe2O3. Transmission electron microscope investigations showed the morphology of the nanoparticles were of approximate spherical shape with an average diameter of 11 nm. Magnetic measurements showed that resulting iron oxide nanopowder exhibited a characteristic ferromagnetism with a maximum saturation magnetisation of 66.83 emu/g.