Nice bike! Welcome to OldMiniBikes!
I would honestly wait til you get a new flywheel as opposed to messing with the governor. The governors can and will explode inside your engine from rpm stress, which will damage everything within the engine. Additionally, when removing the governor, you need to upgrade your flywheel to something that can handle more rpm. flywheels will grenade and you will lose your limbs, possibly your life. No flywheel is built the same, so you don't really know when any will go. I especially think you should keep the stock flywheel big bores governed, just because there is more mass to the rotating assembly.
Solution: Keep governed for now, buy billet flywheel and remove gov once you have the flywheel. You can also add some stiffer valve springs to reduce valve float and free up more high rpm power. I also highly recommend a better conrod at that.
This raises some very important questions though. What is your goal? More speed? More torque while maintaining your speed? Are you on a budget?
If you just want speed, there is no reason to overly stress your engine when you can simply have a gear reduction from where it is at now. A stock 212 will get you 50 mph. You have a 302, soo...
If you just want more power I'd recommend exploring some free mods such as shaving the head (possible with sandpaper on the flattest surface available, Ive used a panel of glass), advancing the timing (again, sandpaper and time is all you need), porting, and up-jetting the carb (can be done with tiny drill bits). I recommend valve springs on top of other mods too. Instead of up-jetting, a simple mikuni slide carb or likewise id also recommend. all combined (minus the mikuni) you can expect 10-13 hp
Billet flywheels are expensive, but are the only safe way you can remove the governor.
As for how much the engine will take... If you mess around without that governor and rev the snot out of it you'll find out..... don't
