About 12 Gigs of your RAM is exactly
not free but "zeroed".Please look again, free is black colored and tells you ~17megabyte. I don't know if that is the reason, but I have same amount (16GB) and I never had a problem creating a Primo-Cache drive and for me only little amount ever is zeroed. While it tells you it is "unused" it still does not mean that it is "usABLE" or "free"...
it is not!
You need either standby or free ram. If you sum both up in your case, you only have ~ 1,5 GB left, no wonder.
This is how it looks for me with PrimoCache already running:

- rammap.jpg (175.74 KiB) Viewed 7919 times
No idea what the hell created a 12GB-zeroed unused usage for you, sry.
You should close any other running cahche/ram-drive and click on "Empty" > "Empty working set", at least this reduces mine zeroed-mem to a minimum.
If that does not help, probably one of your running applications got a mem-leak.
Is the OS 64bit?