Welding blanket is cheap and will prevent fire. I would have already welded a nut on and had it back together. The heat from the weld colling helps too. A friend with a fire extinguisher is a good backup. Sometimes you just have to get her done.
The other way I've done this is to cut the nut side of the bolt off with a sawsall so you can pull the arm out. Then you can press the shank out of the sleeve. I know this is a pain but its not going to come out while you stand there looking at it

have let us know what you come up with. I doubt any amounts of miracle oil will solve this. Help yes solve no. The acid was a good idea but as you see not a solution. Time for big guns and calling in favors.
P.s. good luck tibbs. If I was in uk id be there and you'd be supplying the killer beer that you guys have over there while I helped. Damn....... now I need a beer and its only 730.