The Welsh whisky company is planning a £5m expansion from its distillery site in Penderyn, Aberdare, to Lloyd Street in Llandudno by 2021.
A planning application is yet to be submitted but the proposals are for the former Conwy Archives at the Old Board School.
The £5m project has been backed by the Welsh Government, which has offered £1.4m towards the scheme from the Tourism Investment Support Scheme and the Food Business Investment Scheme.
Deputy minister for culture, sport, and tourism, Lord Elis-Thomas, said: “It’s our priority to develop innovative, all-weather attractions for Wales. This development will be an added attraction for Llandudno and North Wales.
“The new visitor centre and distillery will also shine a light on Wales’ fantastic produce and will add to the cluster of excellent North Wales producers.”
Stephen Davies, chief executive of Penderyn Distillery, said: “The confirmation of Welsh Government support is a major step towards achieving our plans for a brand new distillery and visitor centre in Llandudno.
“With our funding package now in place, we will be developing our proposals further over the coming months and engaging with stakeholders and the local community as we prepare out planning application.”