No professional mechanic here, just a shadetree with a question and maybe a suggestion or two. Why would you think mixed gas would cause the valves to stick? That seems counter-intuitive to me. I would think the oil in the gas might cause things to be better lubricated, not the other way around. But, I could be wrong.
Also, you asked about timing. There is a cam in this engine, just like every other 4 stroke, but you didn't mention making sure that it is timed correctly. The cam may even be plastic, I have seen a few that were, usually on small B&S engines. I'm thinking the cam may have jumped time when the piston crashed that valve. Also, on the spark issue, it does take more voltage to jump the gap under compression than it does at atmospheric pressure. You measured 113psi compression. While that does sound a little low to me, it should be enough to make the engine run just fine, although it might be a little down on power.