Re: leaking spark plug
If the "85 Merc" is an 85hp 4-cyl, it has no thermostat.
While JB will certainly be effective in sealing the leaks around spark plug holes, it'll be a lot easier on you the next time you have to remove a spark plug if you use RTV silicone (automotive-type red or black, don't use copper-containing on aluminum). Just re-pack the area with new silicone after replacing the plug, and you're Good to Go.
Be sure to thoroughly degrease the area or the RTV won't stick. Carb cleaner in a spray can would do the trick.
HTH.............ed
p.s. the telltale might be partially plugged, a blast of compressed air up the telltale tube may help. Otherwise, time for a new impeller!