While replacing the transmission oil pan one of the 10mm bolts didn't snug up properly. Instead it just continued to "spin" in the hole. I removed the bolt and noticed the top half of the threads of the bolt had metal shavings on them. Then I looked up the hole with a flashlight and found what I expected . . . the hole was smooth instead of threaded.

I was thinking of simply retapping the hole with 1mm higher size and then using a bigger bolt just for this hole location.

Will this work?

Currently the pan is leaking at the gasket. I can't believe only one loose bolt would cause it to leak. I hope it is not more than that. I reused the same gasket but was hesitant as it was very stiff and there was only about an 1/8" amount of material around each bolt hole.

Is it also likely the gasket itself is worn out? If so is it ok to use the cheap one that comes with the filter or go to ford and get a proper reusable one?