Can you send a pic of the entire panel and the spot? The bottom is a little rusty as well. Are you sure the bottom and wheel wells are solid. The shot you gave us has a lot of surface rust.
If you heat that panel you will probably expand the steel too much. I would do a through look at the inside quarter at trunk, qtr window and inside wheel well. These qtr panels rust out with humidity. Where has the car been the last 40 years? It may look good because it was patched.
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