Again, it will run well enough, but it will be much more responsive and happier with ported stock valve heads (the intake ports of the big valve heads will be too large to keep airspeed up at lower rpm's with the smaller displacement, which will reduce low rpm power). Take Stan's suggestion- ACN's L3 heads are what this engine needs, even with the W120 cam. A simple flycut to raise the compression (which makes the combustion chamber smaller but does nothing to the intake port volume) is not the fix here. If you're insistent on using the bigger valve heads, Impala's suggestion of increasing the displacement with a 78 mm crank is a much better solution.
And while none of us are engine builders per se, a lot of us have been around long enough to know what works and what doesn't. You're getting good advice here. Al