The Lotus Resources Ltd (ASX: LOT) share price has been on fire this past week.
Over the last 7 days, shares in the mining exploration company have rocketed more than 35%.
Let's take a look at what's propelling the Lotus share price higher this past week.
What's fuelling the Lotus Resources share price?
Despite not releasing much price-sensitive news in the past week, investors have continued to push the Lotus share price higher.
Yesterday, the mining exploration company announced that the licence for its Kayelekera Project Uranium project was renewed.
According to the release, Lotus' mining licence for the site was renewed for a further 15 years.
Lotus Managing Director Keith Bowes commented:
We are delighted to have received an extension of our Mining Licence for an additional 15 years. This is a critical step, as it provides certainty and confidence to our investors that Lotus has the full backing of the Government to continue our on-going development of Kayelekera, as we position the Project to be one of the first assets to recommence production in an ever improving uranium price environment.
Prior to yesterday's announcement, the company's share price has also benefited from increased interest in the uranium sector.
After being in a prolonged bear market, uranium spot prices have soared in the past month.
According to Cameco, uranium prices have soared to 6-year highs.
Strength in the underlying commodity has helped fuel the Lotus Resources share price in the past week.
The major catalyst behind the soaring uranium spot price has been the aggressive buying of the world's largest uranium fund, Sprott Physical Uranium Trust.
More on the Lotus Resources share price
Lotus Resources is a mining and exploration business with mineral development interests in Australia and Malawi.
The company has an 85% interest in its flagship Kayelekera Uranium Project in Malawi.
According to Lotus, the project hosts a current resource of 37.5 million pounds in U3O8, which is a compound of uranium.
The company recently completed a positive feasibility study which demonstrated that Kayelekera can support a viable long-term operation.
Since the start of the year, the Lotus Resources share price has soared more than 127%.
At the time of writing, shares in the mining exploring company have continued their bullish run, trading more than 4% higher for the day at 28.5 cents.
